MANILA, Philippines - Residential builder Cityland Development Corp. is tapping the debt market to raise P1.4 billion for its funding needs.
“The Securities and Exchange Commission (SEC) resolved to render effective the registration of P1.4 billion worth of short-term commercial papers of Cityland,†the company said in a disclosure.
The listed firm’s board of directors approved last September the filing of the renewal application with the SEC for short-term commercial papers (STCPs) worth P1.4 billion.
“Proceeds shall be used to finance the funding requirements of the company,†Cityland earlier said.
Between 2011 and 2012, Cityland issued P1.2 billion worth of STCPs.
The company has several ongoing residential projects: the 40-story Grand Central Residences and the 27-story Pines Peak Tower I, both in Mandaluyong City. Last month, it launched the Citynet 1, a five-story business process outsourcing hub in Wack Wack, Mandaluyong City.
As of end-September, Cityland and its subsidiaries had P846.65 million and P179.55 million in outstanding short-term commercial papers, respectively. The debt papers carry an interest rate of between 1.25 percent to 4.38 percent per annum.
In the nine-month period this year, Cityland (formerly Statehouse Land Development Corp.), posted a four-percent growth in net income to P400.31 million from P383.56 million last year. The uptick was driven by the revenue contribution of Makati Executive Tower IV and Grand Central Residences Tower I.
Cityland operates City & Land Developers Inc., a middle-income residential builder, as well as pre-need firm Cityplans Inc.
City & Land secured regulatory approval to raise P200 million through debt papers in September. The approval of the registration paves the way for City & Land to sell and distribute the commercial papers to fund its capital spending.
City & Land’s current projects are the Manila Residences Bocobo and Grand Emerald Tower that are 90.85 percent and 95.22 percent sold, respectively.