SEC okays Cityland STCP issue

The Securities and Exchange Commission has approved Cityland Development Corp.’s plan to issue P900 million worth of short-term commercial papers (STCPs).

CDC, a member of the Cityland Group of Companies, will use proceeds from the offering to fund project-related costs (P500 million) and pay off maturing loans (P346 million). The balance of P54 million will be used to cover interest expenses.

As of Nov. 17 this year, CDC had an outstanding issuance of P1.196 billion and an unissued balance of P3.8 billion worth of STCPs.

The company is currently developing The Manila Residences, a 39-story office, commercial and residential condominium along Taft Avenue. As of end-June this year, the project was 24.18 percent complete.

CDC has completed over 35 condominium projects, holding the record of delivering all its launched projects.

It earlier raised its authorized capital stock to P3 billion from P1.9 billion to cover its 20-percent stock dividend declaration.

In 2007, CDC posted a net income of P365.4 million, up 82.05 percent from P200.71 million the previous year. Revenues rose 5.6 percent to P3.01 billion from P2.85 billion. 

In the nine months ending September this year, the company reported a net profit of P386.13 million, up 7.66 percent from P358.65 million in the same period a year ago. Revenues amounted to P878.19 million or an increase of six percent from the previous level of P828.47 million.