Calata Corp issues IOUs worth P5M
Calata Corp. has issued another P5 million worth of promissory notes to a retirement fund, proceeds of which it will use to fund its expansion and diversification.
In a disclosure to the stock exchange, Calata said it issued P5 million worth of promissory notes to Instone Philippines Retirement Trust Fund. The notes mature in one year and carry an interest rate of seven percent.
The notes were issued on February 21, 2017.
The company said the issuance of corporate notes is part of its limited offering that was approved by its board on December 16, 2015. The P200-million notes issuance has an oversubscription option of an additional P100 million.
The company said the notes will only be issued to qualified institutional investors.
Calata’s board of directors approved the issuance of the notes to Instone Philippines Retirement Trust Fund as early as November last year. The notes are secured by real estate and tangible personal property.
This is Calata’s second such borrowing in less than four months. Last November, it also issued P5 million worth of IOUs to an individual, Maria Catherine Han.