The Securities and Exchange Commission (SEC) has approved the public offerings made by AREIT, Inc. and Cityland, Inc.
In its meeting on December 9, the commission en banc resolved to render effective the registration statements of AREIT for a PHP15-billion debt securities program, and Cityland for PHP500 million worth of commercial papers, subject to the companies’ compliance with certain remaining requirements.
AREIT may issue the bonds in one or more tranches within three years.
The first tranche will comprise up to PHP3 billion of fixed-rate bonds due 2023.
The real estate investment trust sponsored by listed property developer Ayala Land, Inc. expects to net up to PHP2.96 billion from the first tranche.
The proceeds will be used to refinance debt and to partially finance the acquisition of The 30th, a mixed-use commercial development in Pasig City.
The bonds, which will be offered at face value, will be listed and traded on the Philippine Dealing & Exchange Corp. (PDEx). The offer will run from December 13 to 16, in time for the bonds’ listing at the PDEx on December 23, according to the latest timetable submitted to the SEC.
AREIT engaged BPI Capital Corp. and BDO Capital & Investment Corp. as the joint lead underwriters and book runners for the transaction.
Cityland, meanwhile, will offer to the public PHP500 million worth of commercial papers.
The listed real estate company expects to net up to PHP495.69 million from the offer, for project-related costs, payment of maturing loans or notes, and interest expense.
Among others, the proceeds from the offering will be used to partially finance the construction of One Premiere, a 27-story commercial and residential condominium in Las Pinas City.*PNA