By Neil Jerome C. Morales (The
Philippine Star) | Updated November 23, 2013 - 12:00am
MANILA, Philippines - Residential
builder Cityland Development Corp. is tapping the debt market to raise P1.4
billion for its funding needs.
“The Securities and Exchange
Commission (SEC) resolved to render effective the registration of P1.4 billion
worth of short-term commercial papers of Cityland,” the company said in a
disclosure.
The listed firm’s board of directors
approved last September the filing of the renewal application with the SEC for
short-term commercial papers (STCPs) worth P1.4 billion.
“Proceeds shall be used to finance the
funding requirements of the company,” Cityland earlier said.
Between 2011 and 2012, Cityland issued
P1.2 billion worth of STCPs.
The company has several ongoing
residential projects: the 40-story Grand Central Residences and the 27-story
Pines Peak Tower I, both in Mandaluyong City. Last month, it launched the
Citynet 1, a five-story business process outsourcing hub in Wack Wack,
Mandaluyong City.
As of end-September, Cityland and its
subsidiaries had P846.65 million and P179.55 million in outstanding short-term
commercial papers, respectively. The debt papers carry an interest rate of
between 1.25 percent to 4.38 percent per annum.
In the nine-month period this year,
Cityland (formerly Statehouse Land Development Corp.), posted a four-percent
growth in net income to P400.31 million from P383.56 million last year. The
uptick was driven by the revenue contribution of Makati Executive Tower IV and
Grand Central Residences Tower I.
Cityland operates City & Land
Developers Inc., a middle-income residential builder, as well as pre-need firm
Cityplans Inc.
City & Land secured regulatory
approval to raise P200 million through debt papers in September. The approval
of the registration paves the way for City & Land to sell and distribute
the commercial papers to fund its capital spending.
City & Land’s current projects are
the Manila Residences Bocobo and Grand Emerald Tower that are 90.85 percent and
95.22 percent sold, respectively.
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