Cebu Landmasters raises P5 billion for affordable housing

Cebu Landmasters Inc. has raised about P5 billion by offering sustainability-linked bonds. This announcement was made on Friday, as the company aims to tackle the housing shortage in the Philippines, which currently stands at 6.7 million. The bonds were listed on the Philippine Dealing & Exchange Corp. (PDEx). This funding will help Cebu Landmasters expand its affordable housing efforts. Sustainability-linked bonds are unique because they are tied to environmental and social goals. If the company does not meet its targets, the interest rates on the bonds can increase. The P5 billion raised is part of a larger P15 billion shelf-registration program. The new bonds, known as Series D and E, are set to mature in 2028 and 2030. They received a positive response from the market. The Series D bonds have an interest rate of 6.6348%, and the Series E bonds are at 6.9157%. Jose Soberano III, chairman and CEO of Cebu Landmasters, highlighted the company’s mission to create thriving communities for Filipino families. The funds will be used to build an additional 16,000 affordable homes by 2028. This goal is ambitious, as the company has built over 14,000 units in the past two decades and aims to reach a total of 30,000 units by the bond’s maturity. With this move, Cebu Landmasters is committed to making homeownership more accessible for Filipinos while addressing the housing crisis with sustainable solutions.