CLI raises P5 billion for housing in Visayas, Mindanao

Cebu Landmasters Inc. (CLI) has successfully raised P5 billion through a green bond offering. This money will be used to help close the housing gap in the Visayas and Mindanao regions of the Philippines. Jose Franco Soberano, CLI's president and COO, announced that this funding aims to build 16,000 affordable housing units. These units will be developed by February 2029, with some already under construction. Soberano expressed confidence in meeting this target. The bond issuance includes three-year bonds at a 6.6348 percent interest rate and five-year bonds at a 6.9157 percent rate. This offering is part of CLI’s larger P15-billion funding plan. The bond was listed on the Philippine Dealing and Exchange Corp. and was oversubscribed three times, indicating strong demand. Green bonds must be used for specific sustainability goals. If CLI does not meet its targets, the interest rates on the bonds will increase. The company wants to provide affordable homes priced between P2.5 million and P3.5 million. CLI must complete 8,500 homes by February 2027 to avoid higher interest rates. The company currently has the capacity to build up to 8,000 units per year. This is the second sustainability-linked bond in the country, following Ayala Land's P6 billion bond issued last year.