The Securities and Exchange Commission (SEC) on Friday said it “considered favorably” the bond offering of AREIT, Inc. and the commercial papers of Cityland, Inc.
In a statement, the regulator said the Commission En Banc approved the registration statements of AREIT for the shelf-registration of its P15-billion debt securities program and Cityland’s P500-million commercial papers in its Dec. 9 meeting.
However, this is still subject to both firms’ compliance with other requirements, the SEC said.
AREIT may issue the shelf-registered bonds within three years. Its initial tranche will consist of up to P3-billion fixed-rate bonds due 2023.
AREIT may net up to P2.9 billion from the first tranche, which will be used to refinance debt and to partially finance its acquisition of mixed-use commercial development The 30th in Pasig City.
According to the latest timetable AREIT submitted to the SEC, the Ayala-led company plans to conduct the offer from Dec. 13 to 16. The bond listing at the Philippine Dealing & Exchange Corp. (PDEx) is slated on Dec. 23.
AREIT tapped BPI Capital Corp. and BDO Capital & Investment Corp. as joint lead underwriters and bookrunners for the offer.
Meanwhile, Cityland is planning to offer P500-million worth of commercial papers to the public.
Cityland may net up to P496 million for the offer, which will be used to pay project-related costs, maturing loans or notes, and interest expense.
Proceeds may also be used to partially fund the construction of its 27-story commercial and residential condominium project in Las Piñas City, One Premiere. — Keren Concepcion G. Valmonte