Cebu Landmasters raises P5B from sustainability bonds offer

VisMin property developer Cebu Landmasters Inc. on Friday announced it has raised about P5 billion through offering sustainability-linked bonds.

In a statement on Friday, CLI said it listed its P5-billion sustainability linked-bonds (SLB) on the Philippine Dealing & Exchange Corp. (PDEx) as it raises capital to bank roll its aim of addressing the country’s 6.7 million housing backlog and significantly expand its affordable housing portfolio.

An SLB is a unique financial instrument tied to an environmental, social, and governance (ESG) objective. If the issuer fails to meet its sustainability targets within a specified period, the interest rate increases. 

The property developer said the issuance of the P5-billion marked the second tranche of the company’s P15-billion shelf-registration program.

The newly PDEx listed Series D and E bonds, due in 2028 and 2030, respectively, “received strong market reception,” according to the company.

In particular, it said the Series D bonds, amounting to P2.86 billion, carry an interest rate of 6.6348%; while the Series E bonds, totaling P2.14 billion, have an interest rate of 6.9157%.

“Our mission at Cebu Landmasters has always been clear: to build communities where Filipino families can thrive,” said CLI chairman and CEO Jose Soberano III. 

“With this sustainability-linked bond, we are strengthening that commitment by holding ourselves accountable to a measurable target—building 16,000 more affordable homes by 2028. In just five years, we will more than double what we have achieved over the past two decades,” said Soberano.

The company said it has already built over 14,000 affordable housing units. It aims to grow its housing portfolio to a 30,000 units by the bond’s maturity.

With its latest SLB issuance, CLI said it is taking a “definitive step” in making homeownership more accessible for Filipinos, “ensuring that the country’s housing needs are met through sustainable and impactful solutions.”—AOL, GMA Integrated News