CYBERZONE Properties, Inc., (CPI) a wholly-owned subsidiary of property developer Filinvest Land, Inc., said on Friday its P5-billion fixed-rate retail peso bond offer was oversubscribed by 2.65 times.
Strong demand from investors prompted the company to tap its authorized oversubscription allotment of P1 billion.
“The proceeds from this bond issue will be used to finance CPI’s aggressive build-up program involving the construction and operation of five additional buildings in Northgate Cyberzone in Filinvest City, Alabang, and three new towers in Cyberzone Cebu in Lahug, Cebu City,” CPI President Joseph Yap said in a disclosure to the Philippine Stock Exchange.
CPI owns and operates office buildings which cater mainly to technology-based companies, including those engaged in the business process outsourcing (BPO) industry and knowledge process outsourcing (KPO).
“We continue to be optimistic about the BPO industry and the overall office leasing market,” Yap said.
CPI’s bond issuance were given a PRS Aaa rating by Philippine Rating Services Corp. (PhilRatings), its highest rating possible, indicating the issuer’s strong capacity to meet its financial commitments relative to that of other Philippine corporates.
The company pegged the interest rate for the 5.5-year bonds at 5.0496 percent per annum.
It tapped BDO Capital and Investments Corp., BPI Capital Corp., EastWest Banking Corp., and First Metro Investments Corp. as joint issue managers, bookrunners and lead underwriters for the issuance.
PNB Capital and Investments Corp. and SB Capital are the co-lead underwriters for the bond offering.
To date, CPI has booked a portfolio of 18 operational buildings with 239,823 square meters of gross leasable area (GLA).
“This year, we expect three new buildings—Vector Three and Axis Tower One in Northgate Cyberzone Alabang, and Tower 2 in Cyberzone Cebu to be operational,” Yap said.
“These will add almost 103,000 square meter of GLA or a 43 percent increase from the fourth quarter of 2016, bringing us to 342,641 square meter by the end of the year,” he added.
By 2020, CPI’s total GLA is targeted to reach 493,720 square meter.
Related news: The Manila Times
