Printer Friendly

Santa Lucia to launch P5-B notes for further expansion.

THE board of Santa Lucia Land Inc. (SLI) said on Tuesday it approved to launch a seven-year corporate note facility for a total of P5 billion, proceeds of which will be used to prepay its existing obligations.

In its disclosure, the company said it will negotiate the notes with a maximum of 19 investors for an aggregate amount of P3 billion and P2 billion as overallotment option.

SLI said it will use proceeds of the transaction for the prepayment of existing obligations of the corporation, the financing of project-development costs and general corporate purposes.

The board also approved to set up a joint venture to develop various projects, including in Baguio City, Quezon City, Bulacan, Cavite, Rizal, Batangas, Palawan and Negros Occidental.

Meanwhile, SLI's board also approved the acquisition of parcels of land in Dagupan City, Cavite, Laguna, Batangas, Rizal, Iloilo, Davao and General Santos.

In February last year, the company raised P3 billion by issuing a 10-year corporate notes, proceeds of which were used to refinance existing obligations to extend the maturity of the company's obligations.

Last year the company said it budgeted capital expenditure of P3 billion, mainly to finance its various developments in the country that consists mainly of horizontal projects.

Earlier, SLI Executive Vice President David de la Cruz said the company is targeting a 'double digit' growth in 2017.

In 2016 the company has acquired 4.18 million square meters of properties to raise its personal landbank while partnering with 39 landowners to add 4.63 million sq m more of land for joint-venture development.

De la Cruz said Santa Lucia intends to leverage on its relatively clean balance sheet to drive the company's growth, with the company ready to sell shares given the right price or borrow on its existing asset.

He said the company's debt ratio stands at 47 percent; giving the company more room to borrow on its balance sheet compared to other developers.'

'But we don't want to over-leverage ourselves, as well,' de la Cruz said.

COPYRIGHT 2018 Asianet-Pakistan
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2018 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Mirror (Makati City, Philippines)
Geographic Code:9PHIL
Date:Jan 9, 2018
Words:398
Previous Article:Taiwan investor keen to fund local electronics manufacturer-TECO.
Next Article:Aboitiz combines coal assets into subsidiary.
Topics:

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters