STI set to build 9 more campuses

By Catherine Talavera (The Philippine Star) Updated March 24, 2017 – 12:00am http://www.philstar.com/business/2017/03/24/1683931/sti-set-build-9-more-campuses MANILA, Philippines –  STI Education Services Group Inc. is set to build nine more campuses, using funds raised from its P3 billion bond issuance. The company listed P3 billion worth of fixed-rate bonds at the Philippine Dealing and Exchange (PDex) yesterday. These bonds comprise the first tranche of the P5 billion bonds approved under the Securities and Exchange Commission’s shelf registration facility. Of the initial P3 billion, P2.18 billion are seven-year bonds due 2024 while the remaining P820 million are 10-year bonds due 2027. STI Holdings president and CEO Monico Jacob said proceeds from the first tranche offering would be used for the expansion of its facilities. Jacob told The Star that the nine new campuses would not be built from scratch. “We are not opening nine new campuses, we are building brownfield. So there are campuses there already, but like what we have done before, we are just transferring them to another campus,” he said. Jacob noted that STI’s previous schools used to be located within commercial buildings when it first started. The company intends to start its expansion initiative by April or May this year. At present, STI has a total of 14 campuses in the country, one of which is a university (STI West Negros University). STI will also use a portion of the bond proceeds to pay down short-term loans. Philippine Dealing System Group chairman and CEO Cesar Crisol said STI is the first educational institution to be listed on the PDEx.