THE Securities and Exchange Commission (SEC) has approved the planned bond offerings of Vista Land & Lifescapes, Inc. (VLL) and Cirtek Holdings Philippines Corp.

In a statement Wednesday, the country’s corporate regulator said it has given the go-signal for VLL to issue P30-billion worth of fixed-rate bonds and Cirtek to issue P2-billion worth of commercial papers.

“The SEC will issue the corresponding orders of registration and permits to sell securities upon the publicly listed companies’ compliance with certain conditions,” it added.

For VLL, the approval was for the company’s bond issuance which will be done in tranches over a three-year period. The first tranche will compose of fixed-rate, Philippine peso-denominated bonds worth P5 billion, which may be oversubscribed to up to another P5 billion.

The issuance will have a 5.5-year tenor, which VLL may redeem in whole at 101% of the principal amount on the third year or at 100.5% on the fourth year.

The offer, if oversubscribed, is expected to raise P9.86 billion for the company, which it will use to “fund the construction and completion of various malls, redevelopment of existing malls and the construction of condominium projects, as well as for general corporate purposes.”

The SEC said VLL is looking to issue and list the bonds on Dec. 12. It has tapped China Bank Capital Corp., PNB Capital and Investment Corp. and SB Capital Investment Corp. as joint issue managers, lead underwriters and bookrunners for the issuance.

For Cirtek, the SEC said the issuance of commercial papers may be done in a lump sum or in tranches within a three-year period.

It said the offer will have three series: a 91-day, P500-million Series A offer; a 182-day, P500-million Series B offer and a 365-day, P1-billion Series C offer.

Overall, the issuance of corporate papers is seen to generate P1.88 billion for Cirtek, which it will use to “refinance existing debt and cover working capital requirements.”

The company may start its offer period upon its receipt of the approval from the SEC. It has selected Multinational Investment Bancorp. as underwriter for the offering.

Shares in VLL at the stock exchange climbed 0.03 points or 0.40% to P7.62 each on Wednesday, while shares in Cirtek declined 0.17 points or 3.15% to P5.23 apiece. — Denise A. Valdez

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