STI plans P5-B bond issue under SEC shelf registration program

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STI Education Services Group Inc. (STI ESG), operator of listed parent firm STI Education Systems Holdings Inc. (STI), is seeking to raise P5 billion from a series of bond issuances to finance its expansion plans.

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In a disclosure to the Philippine Stock Exchange on Thursday, STI said it filed a registration statement with the Securities and Exchange Commission (SEC) on Tuesday, applying for P5-billion worth of fixed rate bond issues under shelf registration.

Under this scheme, companies are allowed to issue securities in one or more tranches in a span of three years. STI ESG will need SEC’s approval first before proceeding with its fund raising initiative.

For the first tranche, STI ESG plans to issue up to P3 billion worth of bonds in seven-year and 10-year tenors.
“The net proceeds of the bonds shall be used to finance STI ESG’s campus expansion projects and for other general corporate requirements,” STI said.

Other companies planning to raise funds in the capital markets through SEC’s shelf registration are Globe Telecom Inc. (P20 billion debt sale), Arthaland Corp. (P3 billion share sale), San Miguel Corp. (P60 billion bonds), DoubleDragon Properties Corp. (P15 billion bonds), and SM Investments Corp. (P50 billion bonds), among others.

STI ESG is 98.66 percent held by listed parent STI Education Systems Holdings Inc., which is led by businessman Eusebio Tanco.

Established in 1928, STI is the investment vehicle of Tanco in the education sector. Under STI ESG, the company has 77 schools composed of 66 STI colleges and 11 STI education centers. Thirty-two of the 77 are company owned and the balance are held by franchisees.

Other than STI branded campuses, the company also owns and operates iACADEMY in Makati specializing in animation, mutimedia and digital arts, as well as De Los Santos STI Colleges, a health science and nursing school.

Through joint venture firm Attenborough Holdings Corp., STI and the Benitez Group own and operate Philippine Women’s University and the campuses of Jose Abad Santos Memorial School (JASMS).

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