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.