Cityland group to issue P2.2B in short term papers

The Securities and Exchange Commission Cityland Group's bid to issue P2.2 billion worth of Short-Term Commercial Papers. Cityland Inc. will be issuing P1 billion, the bulk of which, or P640 million, will be used to pay the company’s payment of maturing loans and notes. Cityland Development Corp. will be issuing P1.2 billion worth of STCPs. Of the P1 billion to be raised by Cityland Inc., P260 million will be used for project related costs, P40 million for operating expenses and P60 million for interest expense. Cityland Development, on the other hand, will be using P640 million from its STCPs for project-related costs; P480 million for payment of maturing loans/ notes and P80 million for interest expenses. The group will offer the papers to local small investors, institutional buyers and the general public. - Cheryl Arcibal, GMANews.TV