THE Securities and Exchange Commission (SEC) has given City & Land Developers Inc. (CLDI) the green light to sell P300 million worth of commercial papers.
In an email forwarded to the media on Friday, the SEC noted the approval during an en banc session on Wednesday covered a shelf registration program.
The commercial papers may be offered “for a period of three years,” of which P100 million will be issued initially as the first tranche, according to the company’s offering prospectus.
The net proceeds of P99.33 million from the first tranche will be used to fund project related costs (P74.58 million) and pay maturing loans and notes (P23.55 million), as well as interest expense (P1.2 million).
The SEC also approved CLDI’s request to be relieved of subscribing to the services of an underwriter, after the developer proved it was capable of underwriting its own commercial papers.