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Regulator approves City & Land’s borrowing plan

Monday, August 31, 2009 [ manilatimes.net ]


THE Securities and Exchange Commission (SEC) approved City & Land Developers Inc.’s plan to borrow money through the issuance of short-term commercial papers.

In a document from the regulator, City & Land can proceed with its P200 million issuance of IOUs.

The proceeds of the debt paper sale would partially finance the development of the Grand Emerald Tower, a 39-storey office, residential and commercial condominium.

The project will rise along Emerald Avenue corner Garnet & Ruby roads, Ortigas Center, and is seen to finish by June 2011. The project would cost an estimated P525 million.

The debt papers shall have a term at most one-year from the issue date.

The interest will be fixed, with “the average interest rate as of June 31, 2009 [at] 5.3962 percent.”

As of last year, City & Land had assets of P1.39 billion, lower than the P1.47 billion the previous year.

In June, its parent, Cityland Development Corp. had said that it plans to raise fresh funds through the sale of new shares to pay off debts and finance its capital expenditures.

Data from SEC showed that the condominium developer said it would increase its authorized capital stock from P1.9 billion to P3 billion to allow it to sell new shares.

The regulator also approved City & Land’s increase in its authorized capital from P400 million to P700 million.

-- Chino S. Leyco

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