BDO to issue P15B, P10B commercial papers; Cityland to offer P690M debt papers
The Securities and Exchange Commission (SEC) has given BDO Leasing and Finance Inc. and CityLand Inc. the nod to proceed with fundraising via debt papers.
The SEC enbanc has approved the P15 billion and P10 billion worth of commercial papers of BDO Leasing and the P690-million commercial papers of CityLand.
BDO Leasing is expected to raise a total of P24.972 billion in net proceeds from the issuances.
The net proceeds of two issuances will be used to repay short-term commercial papers, short- and long-term promissory notes, as well as for re-lending.
BDO Leasing said its two commercial papers were rated PRS Aa by PhilRatings, indicating the high quality and very low credit risk of the securities, as well as the company’s very strong capacity to meet its financial commitment on the obligation.
The company said its investment bank affiliate BDO Capital & Investment Corp. was engaged in distributing the commercial papers to a pool of less than 19 qualified buyers who are ready to buy the papers as soon as it is issued.
Meanwhile, CityLand expects net proceeds of P685.81 million from its commercial paper, half of which will be used to fund the construction of Alabang Premier, while the other half will pay for maturing loans and notes.
Alabang Premier is still in the planning stage, but construction is expected to start in the first half of 2017.
The SEC also approved CityLand’s request to be exempted from the services of an underwriter, given that the company showed its ability to sell its debt securities to the public through earlier fundraising exercises solely by the company.