THE SECURITIES and Exchange Commission (SEC) has approved City & Land Developers, Inc.’s plan to issue P400 million in debt, the property developer said in a stock exchange filing on Monday.
The SEC approved the permit on Dec. 20, it said. The issuance consists of P400 million in short-term commercial paper to be issued at face value and traded over the counter.
In September, the company’s board approved the application with the SEC for the debt issuance, the proceeds of which will be used to finance the company’s funding requirements.
City & Land, a unit of Cityland Development Corp., has business interests in acquiring and developing land for residential, office, commercial, institutional and industrial use.
Some of its projects include Pacific Regency in Malate, Manila; Grand Emerald Tower in Ortigas Center, Pasig; Manila Residences in Veterans Village, Quezon City; and One Taft Residences in Malate, Manila.
City & Land shares were unchanged at 67 centavos each.
Also on Monday, Cebu Landmasters, Inc. said its planned P5-billion sustainability-linked bond issuance received a “PRS Aa plus” credit rating with a stable outlook from Philippine Ratings Services Corp. (PhilRatings).
In a stock exchange filing, the property developer said obligations with a “PRS Aa” rating are deemed “high quality” and subject to very low credit risks, reflecting the company’s “capacity to meet financial commitments.”
A stable outlook means the rating is likely to be kept in the next 12 months.
The rating was given due to the company’s sustained earnings growth and its management and strategy, with a sustained competitive advantage in the Visayas and Mindanao markets, according to PhilRatings.
It added that Cebu Landmasters has sufficient interest coverage ratios despite a more leveraged capital position, but faces threats from a highly competitive market.
The proposed sustainability-linked bonds are the second tranche of its P15-billion debt program.
The issuance has a base offer of up to P3 billion and an oversubscription option of up to P2 billion, consisting of peso-denominated Series D Bonds due in 2028 and Series E Bonds due in 2030.
On Dec. 20, Cebu Landmasters filed with the Securities and Exchange Commission a registration statement with a preliminary prospectus, preliminary offer supplement and other documents for the planned debt sale.
The proceeds from the issuance will be used to refinance debt and for general corporate expenses.
Its net income grew 7% to P2.3 billion in the first nine months, led by its core business and recurring income streams.
Revenue increased 9.2% to P14.1 billion as property sales rose 8.7% to P13.8 billion on strong demand across residential, mid-market, and economic housing segments, along with commercial lot sales.
Cebu Landmasters shares gained 0.38% or a centavo to P2.67 each. — Revin Mikhael D. Ochave
