STI To Issue Maiden PhP3B Flexible Rate Multiple Tenor Corporate Notes

March 24, 2014

STI Education Services Group, Inc. (STI) finally ventured into the capital markets after the listed company inked a Notes Facility Agreement (NFA) with China Banking Corporation (CBC) on 20 March 2014. The NFA allows STI to issue Flexible Rate Multiple Tenor Corporate Notes in the aggregate amount of up to PhP3B.

Under the NFA, STI may choose among various interest rate options whether fixed rate or floating rate, or a combination of both and the tenor of its issuances whether five year or seven year. These options provide STI the opportunity to maximise prevailing market conditions and the flexibility to better calibrate its asset-liability profile.

The proceeds will be used for the expansion plans of STI, including the constructions of academic centers in located Quezon City, Quezon, and Laguna provinces.

PJS Law represented and assisted CBC in this transaction and was led by Partner Job Ambrosio, assisted by Associate Francis Asilo.