Cityland Development Corporation Secures SEC Approval for ₱1 Billion Commercial Paper Offering
Cityland Development Corporation (stock: CDC) has recently received the approval from the Securities and Exchange Commission (SEC) to issue ₱1 billion worth of commercial papers (CPs). This move comes as part of the company's broader efforts to meet its corporate funding requirements and continue its development projects.
The approval was finalized during an SEC meeting on October 17, 2024, following CDC's compliance with the necessary submissions, as outlined in a pre-effective letter issued by the SEC on the same day. By October 18, 2024, Cityland had successfully met these conditions, allowing the SEC to issue the official "Certificate of Permit to Offer Securities for Sale." The approval is formalized under the SEC Markets and Securities Regulation Department (MSRD) Order No. 94, Series of 2024.
The ₱1 billion commercial paper issuance is part of a larger financial strategy by Cityland to fund various corporate needs, including ongoing and upcoming projects. This recent offering follows previous issuances: in October 2023, CDC was authorized to issue ₱1.1 billion, and in 2022, another ₱1.5 billion was issued. By mid-2024, Cityland's outstanding CPs had reduced to ₱1.091 billion.
Commercial papers are short-term debt instruments that companies use to raise funds for working capital or other immediate financial needs. They are typically issued for periods ranging from a few weeks to a year. In this case, Cityland’s Php1 billion issuance is expected to help cover its corporate requirements, including new and ongoing real estate projects.
Financial Backing & Projects Under Development
Cityland Group has secured strong financial support, with access to credit lines amounting to ₱2.3 billion from multiple financial institutions. This gives CDC flexibility to draw funds for any member companies within the group as needed.
One of Cityland's flagship projects is the CityNorth Tower, a 50-story mixed-use building in Quezon City that will feature residential, office, and commercial units. The project, located near major shopping centers like SM City North EDSA and Trinoma, was launched in February 2024 and is expected to be completed by 2028.
Other projects contributing to the company’s sales include Pioneer Heights 1, a residential development. These developments have generated significant sales, with CityNorth Tower accounting for 26.4% of total group sales, while Pioneer Heights 1 contributed 43.9%.
Cityland's financial results for the first half of 2024 show a mixed picture. While the group reported a net income of ₱339.23 million, this was a 24% drop from the ₱497.56 million recorded a year earlier. The decline was largely due to a 40.4% drop in real estate sales, which fell to ₱767.33 million from ₱1.29 billion last year. This downturn reflects lower project completion rates and shifting market conditions.
Despite this, Cityland remains a key player in the property development sector, particularly in residential condominiums and mixed-use buildings.
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