Published : Saturday, October 22, 2011 00:00 [ manilatimes.net ]
Written by : KRISTA ANGELA M. MONTEALEGRE
CITYLAND Inc. has secured an approval from the Securities and Exchange Commission (SEC) to raise funds for the development of existing projects and pay maturing loans.
Documents from SEC showed that Cityland registered P1.10-billion worth of short-term commercial papers (STCPs) and obtained regulatory approval to be exempted from submission of an underwriting agreement.
Net proceeds of about P624 million will be spent for the development of Tagaytay Prime Residences and The Manila Residences II, which is 13.76 percent and 7.45 percent completed at end June.
A total of P423.81 million will be used for the payment of maturing loans and notes, while P45.76 million will be allotted for interest expenses.
As of June 30, the average interest is 4.1597 percent and the STCPs will have a term not exceeding 365 days from issue date.
Bulk or 70 percent of the STCPs will be offered to the general public beginning next year, while the remaining 30 percent will be offered to institutional buyers. Including the latest registration, the company has raised P7.54-billion worth of STCPs since 2003. At end June, Cityland has outstanding issuances of P1.40 billion.
Cityland’s net income for the second quarter fell to P188.30 million from P224.78 million on lower real estate sales.