ROCKWELL Land Corp. has secured regulatory clearance from the Securities and Exchange Commission (SEC) for a fixed-rate bond offering worth up to P10 billion.
In a disclosure on Tuesday, the property developer said it received the order of registration and the Certificate of Permit to Offer Securities for Sale from the SEC’s Market and Securities Regulation Division.
Rockwell is proposing to offer up to P7 billion in fixed-rate bonds with an oversubscription option of up to P3 billion, to be issued in up to two series: Series A three-year bonds due 2029 and Series B five-year bonds due 2031.
The Series A bonds will carry an interest rate of 5.5666 percent per annum, while Series B will offer 5.8595 percent per annum.
The offer period will run from 9 a.m. starting today until 12 p.m. on March 10, with the company targeting issuance and listing on the Philippine Dealing and Exchange Corp. on March 18.
The bonds will be issued at 100 percent of face value, with interest computed on a 30/360 day-count basis and payable quarterly in arrears.
Rockwell Land said the issuance would be the first tranche of a P20-billion shelf registration.
It added that the proposed offering had been assigned a “PRS Aaa” rating with a stable outlook by Philippine Ratings Services Corp., indicating obligations of the highest quality with minimal credit risk.
Proceeds from the offering will be used to partially fund capital expenditures, including land development and construction costs for various ongoing projects such as horizontal residential developments, Power Plant Mall Angeles, Rockwell at IPI Center, Aruga Hotel in Mactan and Rockwell Center Bacolod.
BDO Capital & Investment Corp. and First Metro Investment Corp. are the joint issue managers and, together with PNB Capital and Investment Corp. and RCBC Capital Corp., will also serve as joint lead underwriters and bookrunners.
Rockwell Land shares gained P0.01, or 0.53 percent, to close at P1.90 each on Tuesday.
