Cebu Landmasters Raises P5 Billion from Sustainability-Linked Bonds

Cebu Landmasters Inc. (CLI) has listed its P5-billion sustainability-linked bonds (SLB) on PDEx, reinforcing its commitment to addressing the country’s 6.7 million housing backlog by building 16,000 more affordable homes by 2028.

​The SLB ties CLI’s financing to affordable housing targets, with the company set to exceed 30,000 units by bond maturity—more than doubling what it has built in the past two decades.

Strong investor confidence was evident as the bond offering was oversubscribed three times at the narrow end, with PhilRatings maintaining a PRS Aa Plus credit rating and CLI earning recognition in the ATRAM SDG Fund for its sustainability initiatives.

This issuance marks the second tranche of CLI’s P15-billion shelf-registration program, leaving P5 billion available for future issuances. The newly listed Series D and E bonds, due in 2028 and 2030 respectively, received strong market reception. Series D bonds, totaling P2.86 billion, carry an interest rate of 6.6348%, while Series E bonds, worth P2.14 billion, have an interest rate of 6.9157%.

“Our mission at Cebu Landmasters has always been clear: to build communities where Filipino families can thrive,” said CLI Chairman and CEO Jose Soberano III. “With this sustainability linked bond, we are strengthening that commitment by holding ourselves accountable to a measurable target—building 16,000 more affordable homes by 2028. In just five years, we will more than double what we have achieved over the past two decades.”

An SLB is a unique financial instrument tied to an environmental, social, and governance (ESG) objective. If the issuer fails to meet its sustainability targets within a specified period, the interest rate increases. CLI is the first real estate developer in the Philippines to use affordable housing as the key success metric for an SLB. The company has already built over 14,000 affordable housing units, a number that will exceed 30,000 by the bond’s maturity.

Market confidence in CLI remains strong, as evidenced by PhilRatings maintaining its PRS Aa Plus credit rating with a Stable Outlook for the issuance, citing the company’s sustained leadership in the VisMin real estate sector. Further reinforcing its ESG credentials, CLI was recently included in the ATRAM SDG Fund, recognizing its improved sustainability initiatives and strong financial performance.

“The overwhelming investor interest in this offering, which was oversubscribed three times at the narrow end, is a testament to the trust financial institutions place in CLI,” added Soberano. “This confidence reinforces our role as a key player in bridging the housing gap while delivering sustained value to stakeholders.”

With its latest SLB issuance, CLI is taking a definitive step toward making homeownership more accessible for Filipinos, ensuring that the country’s housing needs are met through sustainable and impactful solutions.