One of the subsidiaries of ItalPilipinas Development Corp., a listed property developer, is preparing to tap the debt market to fund a new residential project.
The company said its board has approved the entry of IDC Prime Inc. into a corporate notes facility of up to P1 billion, with the listed firm also participating as guarantor. The proposed issuance will be conducted as a Securities and Exchange Commission-exempt offering and will be limited exclusively to qualified buyers under the Securities Regulation Code.
Proceeds from the notes facility will be used to fund the development, construction, and completion of IDC Prime’s Baia Verde Residences, a residential project located on a 2.3-hectare property in Morong, Bataan. Part of the funds will also be allocated for associated project costs and working capital requirements directly related to the development.
The fund-raising move underscores ItalPilipinas’ strategy of deploying deal-specific financing to keep its project pipeline moving amid a more selective lending environment for real estate.
ItalPilipinas has three wholly owned subsidiaries, namely IDC Prime, IDC Homes Inc., and Prima Management Corp. The company also holds a 25 percent equity stake in Constellation Energy Corp., a developer of renewable energy facilities that supply clean energy to Philippine grids.
It first completed project was Primavera Residences, a twin-tower, 10-storey mixed-use condominium in the Pueblo de Oro Township in Cagayan de Oro City. Its current pipeline includes Primavera City in Cagayan de Oro and Miramonti, a mixed-use development in Sto. Tomas, Batangas.
The proposed notes issuance adds Bataan to ItalPilipinas’ growing portfolio of provincial developments.
