Robinsons Land’s bond offering registration ‘considered favorably’ by SEC

The Securities and Exchange Commission (SEC) on June 25 considered favorably the registration statement of Robinsons Land Corporation (RLC) for its public offering of fixed-rate bonds worth P10 billion with an oversubscription option for P10 billion.

This means the SEC has effectively approved the registration of the securities. However, RLC has to fulfil certain requirements or conditions such as the submission of the final prospectus before it can receive the order of registration and permit to sell, and proceed with the actual public offering of the bonds.

The publicly listed property developer will offer the fixed-rate bonds at face value. It has the discretion to offer the bonds in two series, Series C Bonds due 2023 and Series D Bonds due 2025.

In the prospectus submitted by RLC to the SEC, the bonds will be issued in minimum denominations of P50,000 each and in integral multiples of P10,000 thereafter, and traded in denominations of P10,000 on the Philippine Dealing and Exchange Corp. (PDEx). This means an individual with P50,000 could actually buy the bonds during the offer period or an individual with P10,000 could buy them from other investors through the PDEx later on. 

Robinsons Land expects to net P9,871,346,875 from the base offer or P19,754,616,875 should it exercise the oversubscription option in full.

RLC will use the net proceeds to partially fund its capital expenditure budget for 2020 and 2021; partially repay short-term loans maturing in the second half of 2020; and fund general corporate purposes including, but not limited to, working capital.

The capital expenditure budget covers the expansion of the company’s investment and development portfolios, particularly the completion of new and/or the expansion of existing malls, offices, hotels, industrial facilities and residential properties, as well as the acquisition of land in various strategic locations across the country.

The fixed-rate bonds, which have received a “PRS Aaa” rating from the Philippine Rating Services Corporation, will be listed and traded on the Philippine Dealing & Exchange.

BDO Capital & Investment Corp., BPI Capital Corporation, China Bank Capital Corporation, First Metro Investment Corporation and Standard Chartered Bank will serve as joint lead underwriters and bookrunners for the offer.   

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