The Securities and Exchange Commission has given the green light to the planned debt notes issue of property developer Cityland Inc.
In a special meeting on Friday, the SEC approved Cityland’s P1.5 billion worth of short term commercial papers (STCP).
According to issue’s prospectus sourced from the SEC, the P1.491 billion net proceeds— after offer related fees and taxes —will go to payment of maturing loans and notes (P1.183 billion), project related costs (P290 million) and interest expenses (P18.450 million).
Cityland will mainly pay off its maturing STCP of P1.2 billion with an average interest rate of 1.23 percent, maturing up to early next year as of end-June.
The P1.5-billion STCPs is expected to be taken up by combined institutional buyers (30 percent) and the general public (70 percent).
The Cityland group has been traditionally issuing debt notes to raise funds to be used for the company’s expansion and projects.
Among Cityland’s completed and ongoing projects are: Tagaytay Country Homes 2B, 2D and 2C; Tagaytay Prime Residences; The Manila Residences Tower 1 and 2; Brentwood Mansion; Windsor Mansion; Oxford Mansion; Pasig Royale Mansion; Tagaytay Executive Village; and Nalc Country Homes.
In the first half of the year, Cityland saw net income increase by 74 percent to P579.9 million from P331.58 million as its revenues also surged by 91 percent to P1.788 billion from P932 million a year ago.