Cyberzone Properties Inc. (CPI) , the office leasing subsidiary of Filinvest Land Inc., raised a total of P6 billion from the oversubscribed public offering of 5.5-year fixed rate bonds.

In a disclosure to the Philippine Stock Exchange, CPI President Joseph Yap said total demand for the offering reached 2.65 times the base size of P5 billion and the strong demand prompted them to exercise the oversubscription option of P1 billion.

CPI pegged the interest rate for the 5.5-year bonds at 5.0496 percent per annum. The Philippine Rating Services Corporation assigned the newly-issued and listed retail bonds its highest credit rating of PRS Aaa.

“The proceeds from this bond issue will be used to finance CPI’s aggressive build-up program involving the construction and operation of five additional buildings in Northgate Cyberzone in Filinvest City, Alabang and three new towers in Cyberzone Cebu in Lahug, Cebu City in the next three years,” said Yap.

He added that “we continue to be optimistic about the BPO industry and the overall office leasing market.”

CPI’s current portfolio consists of 18 operation buildings with 239,823 square meters of gross leasable area (GLA). This year, it expects three new buildings to be operational: Vector Three and Axis Tower One in Northgate Cyberzone, and Tower 2 in Cyberzone Cebu.

“These will add almost 103,000 square meters of GLA or a 43 percent increase from the fourth quarter of 2016, bringing us to 342,641 square meters by the end of this year. By 2020, CPI’s total GLA is targeted to increase to 493,720 square meters,” said Yap.

CPI tapped BDO Capital & Investments Corporation, BPI Capital Corporation, EastWest Banking Corporation, and First Metro Investments Corporation to serve as the joint issue managers, book-runners, and lead underwriters.

On the other hand, it engaged PNB Capital and Investments Corporation and SB Capital as the co-lead underwriters for the offering.