SEC green-lights Cityland’s P1.3-B commercial papers
CITYLAND Development Corp. (CDC) has obtained regulatory approval for the issuance of commercial papers amounting to P1.3 billion as well as the P200 million remaining of the shelf offering of subsidiary City & Land Developers, Inc.
In separate disclosures to the Philippine Stock Exchange on Wednesday, the companies announced that the Securities and Exchange Commission (SEC) approved during a Nov. 14 meeting the offering of the commercial papers.
CDC intends to use proceeds from the commercial papers to finance ongoing high-rise developments and settle maturing debts. City&Land earmarked proceeds from its P200- million issuance for the same purposes.
The subsidiary earlier received approval from the SEC for the shelf registration of commercial papers cumulatively worth P300 million, with the first tranche amounting to P100 million.
City&Land had expected to net over P99.3 million from the initial tranche. Of the total, P74.6 million will be used to cover projectrelated costs, P23.6 million to pay maturing debts and P1.2 million to settle interest expenses. In June, CDC launched the Pines Peak Tower 2 in Mandaluyong City. The residential buildings will rise 27 storeys high beside Cityland Pines Peak Tower 1 and along Pines Street in Barangay Barangka Ilaya.
In October, City& Land next launched One Taft Residences, a 40-storey condominium along Taft Avenue in Manila. The project offer commercial, office and residential spaces near the socalled university belt.
The company is also developing North Residences, a commercial and residential condominium in Quezon City. The project is slated for completion in 2018.
In the first nine months, CDC booked a 39% decline in net income to P374.8 million from the P610.3 million reported for the comparable 2015 period that took into account the sale of a parcel of land.
The listed company’s revenues dropped 31% to P1.52 billion from P2.19 billion. Aside from the lack of a nonrecurring gain, the weaker financial results reflected a 42% plunge in real estate sales.
Shares in CDC closed a centavo or 0.89% lower at P1.11 apiece on Wednesday.