The Securities and Exchange Commission (SEC) has approved the plan of Rockwell Land Inc. to issue P5-billion worth of unsecured Fixed-Rate Peso Retail Bonds.
A filing with the SEC showed that the bonds, which will mature seven years and one quarter from the issue date, will be redeemed at par or 100 percent of face value on maturity date unless Rockwell Land exercises its early redemption option.
The listed property developer said that the P5 billion to be raised through the offering will be used for its capital expenditure requirements for the remainder of the year 2013 and year 2014, primarily for its Proscenium flagship project.
“These capital expenditure requirements already excludes those projects the funding of which were allocated from the existing P10-billion corporate notes drawn this year,” Rockwell Land said.
Upon the targeted completion of the Proscenium by 2018, a flagship project designed by a world renowned architect of L’ Opera de la Bastille fame in Paris, Rockwell Land is expected to strengthen its hold in the high-end property market.
Rockwell Land has tapped First Metro Investment Corp. as the issue manager, while the joint lead underwriters are SB Capital and Investment Corp. and FMIC.
The board of directors of Rockwell Land authorized, through a resolution passed and approved on September 19, 2012, the bond issuance.
Local debt watcher Credit Rating and Investors Services Philippines Inc. (Crisp) has given the P5-billion bonds issuance of Rockwell Land a top rating that signifies the firm’s strong capacity to repay debt even in a worst case scenario.
In a statement, Crisp announced that it has assigned an “AA+” issuer rating for Rockwell Land with a “Positive Outlook” for the bond issue.
“Crisp’s ‘AA+’ rating assignment is underpinned by a combination of Rockwell Land’s strong presence in the top segments of the property development market, impressive income growth and prudent fiscal management policy,” the debt watcher said.