By Iris C. Gonzales (The Philippine
Star) | Updated October 19, 2015 - 12:00am
MANILA, Philippines - The Securities
and Exchange Commission (SEC), has approved the plan of Cityland Development
Corp. to issue P1.5 billion worth of short-term commercial papers.
Proceeds would be used to refinance
maturing debt and to fund its projects, Cityland said in its registration
statement submitted to the SEC.
Of the amount, P1.2 billion would be
used for the payment of maturing existing notes while the balance would be
allocated for project financing.
“The P1.2 billion proceeds for the
payment of notes payable are all estimated to be allocated for the payment of
maturing commercial papers amounting to P1.269 billion with an average interest
rate of 1.23 percent and maturity date from 31 to 364 days,” Cityland said.
The project related cost, meanwhile,
refers to the cost to finance the completion of Cityland’s The Manila
Residences II.
“The utilization of the P290 million
project related costs is broken down as follows: P145 million from November
2015 to January 2016; P145 million from February to April 2016,” Cityland said.
The Manila Residences II is a
39-storey office, commercial and residential condominium located along Taft
Avenue, which is slated for completion next year.
According to Cityland, the STCPs will
be offered as follows: November 2015 to January 2016, P375 million; February
2016 to April 2016, P375 million; May 2016 to July 2016, P375 million; August
2016 to October 2016, P375 million.
“The interest rates will be fixed and
payable in arrears either in monthly, quarterly, semi-annual or annually or at
the end of the terms based on the prevailing interest rates at the time of
issuance. The average interest rate is a one-time payment at the end of each
term,” it said.
Cityland’s projects include medium to
high-rise office, commercial, and residential condominiums located in Makati,
Mandaluyong, Manila and Pasig; and residential subdivisions and farmlots in
Bulacan and Cavite.
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