Philippine Commercial Capital Inc. (PCCI) has secured regulatory approval to proceed with the issuance of P500-million worth of short-term debt instruments without the need to register it, a transaction that could help the company expand its present size and be more competitive.
In an application filed with the Securities and Exchange Com-mission (SEC), PCCI said that it intends to be exempted for the registration of the issuance of P500-million worth of short-term commercial papers (STCP) to not more than 19 persons, including directors, officers, stockholders and related interests.
“The company has been one of the significant players in the industry, and has thus far proven its financial strength over the years. The company firmly believes that it has the capability to meet increased borrowings, and granting the subject request would further boost the capability of the company to best serve its clients,” PCCI told the SEC.
Specifically, the company said the subject securities shall be offered within a 12-month period to not more than 19 non-institutional lenders, including directors, officers, stockholders and related interests.
The debt instruments will be payable to a specific person, neither negotiable nor assignable, and shall be held on to maturity in an amount prescribed by resolution of the SEC.
According to PCCI, the increase will allow the company to grow beyond its present size, enabling it to be more competitive in the market.
“The increase would also enable the company to accommodate additional lines/funds being extended to the company by its clients. It has several clients who have signified their intention to extend lines or increase their exposure in the company,” the company further said.
The company also believes that the issuance will help it expand its underwriting activities in line with the continuing growth of the market.
Regularly, commercial papers like STCPs do not really need to be registered with a SEC as long as it matures before nine months.