SEC clears AREIT, Cityland borrowings

MANILA, Philippines — The Securities and Exchange Commission (SEC) has approved the borrowing plans of Ayala Land’s AREIT Inc. and Cityland Inc.

AREIT, the pioneering real estate investment trust (REIT) of Ayala Land, filed for a P15 billion debt securities program while Cityland will issue P500 million worth of commercial papers.

Under the SEC’s shelf registration program, AREIT’s bond offer may be issued in or one or more tranches within a period of three years, with the first tranche to comprise up to P3 billion of fixed-rate bonds due 2023.

AREIT engaged BPI Capital Corp. and BDO Capital & Investment Corp. as the joint lead underwriters and bookrunners for the transaction.

REITs are companies that own income-generating real estate assets such as apartment buildings, office buildings, medical facilities, hospitals, hotels, resorts, highways, warehouses, shopping centers, railroads, among others.

Cityland, meanwhile, will offer to the public P500 million worth of commercial papers, proceeds of which will be used for project-related costs, payment of maturing loans or notes, and interest expense.

More specifically, proceeds from the offering will be used to partially finance the construction of One Premiere, a 27-story commercial and residential condominium in Las Piñas City.