By Leslie D. Venzon
MANILA, Oct. 19 (PNA) — Cityland Incorporated has secured approval from the Securities and Exchange Commission (SEC) to sell P1.8 billion worth of short-term commercial papers (STCPs).
Based on its SEC regulatory filing, Cityland said it will utilize Php1.32 billion of the net proceeds from the offering of the STCPs to pay maturing loans/notes, and P460 million to finance the construction of the Manila Residences II.
The Manila Residences is a 39-storey office, commercial and residential condominium located along Taft Avenues.
As of June 30, the project’s percentage of completion was 68.49 percent while percentage sold was 56.18 percent. Manila Residences was launched in 2010.
Cityland said the remaining P18 million proceeds of the offering will be utilized to settle interest expense.
The STCPs will be offered to institutional buyers and general public in the next four quarters starting next month.
The commercial papers constitute direct, unconditional and general obligations of the Issuer. These may be in registered or bearer form.
The STCPs shall have a term not exceeding 365 days from the issue date.
The interest rates will be fixed and payable in arrears either monthly, quarterly, semi-annually or annually or at the end of the terms based on the prevailing interest rates at the time of issuance.
The average interest rate as of June 30 is 0.9987 percent.
In the same regulatory filing, SEC also approved the request of Cityland for exemption from submission of underwriting agreement.
The approval took into consideration that the P1.8 billion issuance did not exceed 25 percent of the company’s net worth, pursuant to the provisions of the Securities Regulation Code. (PNA)