Robinsons Land down by maturing debts, increasing cost of capital

At the end of June 14, 2023, trading, Robinsons Land Corporation (RLC) falls below the 14 Peso resistance level to close at 13.90.

Despite an aggressive share buy-back program, RLC failed to take off. RLC appropriated 9 billion for the share buy-back program. So far 5.1 billion has been spent buying RLC shares from the market. The 9-billion budget for share buy-back is 12.9% of the present market capitalization of RLC of 69.67 billion.

RLC’s cash balance as of the end of the first quarter of 2023 is down to 6.5 billion from 8.3 billion at the start of the year. While current portions of loans payable ballooned to 23.9 billion.

Among the debts coming due is the 4.94 billion loans from BPI maturing on August 10, 2023, paying 3.89% interest rate per annum. Another, is a 12.763 billion bonds maturing on July 17, 2023, with an annual coupon rate of 3.683%

With interest rate going up, the debts will be refinanced at a higher interest rate.

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