CEBU Landmasters, Inc. (CLI) issues corporate banknotes to raise $ P2 billion to finance capital expenditure and general corporate expenditure.
A listed developer announced yesterday in a stock exchange announcement that he had signed a securities loan agreement with ALFM Peso Bond Fund, Inc. and ALFM Money Market Fund, Inc. for 18-month debt protection. The notes will have an initial fixed rate of 4.75%.
The proceeds will finance the company's expansion plans, in particular the purchase of land.
"CLI has several strategic land acquisitions in larger Cebu, Bacolod and Davao, with new expansion areas such as Iloilo, Butuan and General Santos, also on the horizon," he said.
CLI tapped BPI Capital Corp. to organize the issue of bonds.
The company said in April that it is allocating capital expenditure of 13 billion P13 this year because it is launching 29 new projects that could generate sales of around 25 billion P. This means an additional 7517 residential premises, 1223 hotel rooms and 161 034 square meters of gross leasable area in its portfolio.
The Cebu developer aims to achieve consolidated net income of P2.6 billion and parent income of P2 billion by the end of 2019.
In the first half of the year, CLI posted a net income of 854.34 million P, an increase of 13% compared to the previous year, due to a 34% increase in revenues to P3 3.5 billion. – Denise A. Valdez