STI plans to sell bonds

STI Education Services Group, Inc. (STI ESG), a subsidiary of publicly-listed STI Education Systems Holdings, Inc., is planning to raise up to R5 billion from the issuance of fixed rate bonds.

In a disclosure to the Philippine Stock Exchange, STI said STI ESG has filed a Registration Statement with the Securities and Exchange Commission for the shelf registration of the bonds.

Under the application STI ESG is seeking the registration of a total principal amount of up to R5 billion, to be offered in one or several tranches. The first tranche will be for R3 billion, to be issued in two series, Series 7Y and Series 10Y, respectively.

“The net proceeds of the Bonds shall be used to finance STI ESG’s campus expansion projects and for other general corporate requirements,” STI said. STI Education Systems Holdings, Inc. owns 98.66 percent of the issued and outstanding capital stock of STI ESG.

STI Holdings, owner of one of the biggest network of private schools in the Philippines, reported a net income of R542.9 million during the six months ending September 30, 2016, an impressive 60 percent jump compared to the R338.7 million it posted during the same period last year.

The company generated about P1.29 billion in revenues, an improvement of 15 percent compared to the same six month period in 2015.

The six months leading to September 30, 2016 represent STI Holdings’ second quarter performance as the company follows an April to March fiscal year mirroring that of an academic cycle in the Philippines, since bulk of its income comes from its education services.