Image via WikipediaMANILA - Listed property firm Cityland Development Corp. is planning to issue P900 million worth of short-term commercial papers (STCP) to pay maturing obligations and to partially finance its real estate projects.Cityland sought approval from the Securities and Exchange Commission for the STCPs, which would mature in one year and would carry a fixed interest rate of 5.23%. The company said these will be sold to local small investors and institutional buyers.
Of the amount, Cityland said it will allot P240 million for more than half of the total development cost of 2 real estate projects.
The company said it may tap its existing credit line with banks and other financial institutions to cover for the remaining amounts needed for the Makati Executive Tower III (a 37-storey commercial, office, and residential condominium in Makati City) and the Mandaluyong Executive Mansion III (a 7-storey commercial and residential condomium in Mandaluyong City).
As of end-June, Cityland has P1.91 billion in total outstanding loans.
Formerly called Statehouse Land Development Corp., Cityland has projects in medium to high-rise office, commercial, and residential condominiums in Makati, Mandaluyong, Manila, and Pasig. The company also develops farmlots and residential subdivisions in Bulacan and Cavite provinces.
Shares of Cityland fell to P1.44 apiece on Wednesday from P1.50 on Tuesday.
http://www.abs-cbnnews.com/business/10/14/09/cityland-plans-raise-p900-m-debt-papers
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