Property developer Century Properties Group Inc. (CPG) has started to offer its P3-billion debt papers to the public, proceeds of which will be used to fund its capital expenditures for its horizontal projects.
The company said it has set the rate for its five-year fixed rate bond at 5.7524 percent per year, or higher than the current secondary rate of 4.4332 percent.
The company is offering P2-billion worth of bonds, with a P1-billion oversubscription options. The paper will be listed and traded on the Philippine Dealing and Exchange Corp. on February 24.
“We are happy with the strong capital markets condition allowing us to price the issuance at the tighter end of the range of our indicative spread,” Ponciano S. Carreon Jr., CPG’s CFO, said.
This is the first tranche of CPG’s P6-billion debt securities program under shelf registration with the Securities and Exchange Commission.
A total of P1 billion from the proceeds will fund capital expenditures for the horizontal affordable housing developments of Phirst Park Homes Inc. (PPHI), its joint venture with Japan’s Mitsubishi Corp.
The balance of the bond proceeds will be earmarked for partial debt refinancing and other general corporate purposes.
“This marks the fourth capital markets transaction of CPG, and we expect this offering to be very well received by a broad range of investors. We are honored to be a reliable partner of the CPG group in achieving its growth ambitions,” Ryan Martin L. Tapia, president of China Bank Capital Corp. said.
The bank is the sole issue manager, lead underwriter and sole bookrunner for the offer.
As of September, Phirst Park launched three new projects with total expected revenue of P2.9 billion. These are in General Trias, Cavite; Baliwag, Bulacan; and Tayabas, Quezon.
“We are greatly encouraged with the capital markets confidence in CPG and with the continued preference of first-home buyers for our PPHI projects,” CPG President and CEO Jose Marco R. Antonio said.
“For this year, we will be launching four new masterplanned communities to serve the strong demand for quality affordable homes.” The public offer period for CPG’s bond offering will end on February 18.