By James A. Loyola
Century Properties Group, Inc. (CPG) reported that its planned P3-billion bond issuance was more than twice oversubscribed.
In a statement, the firm said it has priced its Three-year Unsecured Fixed Rate Peso Retail Bonds due in 2022 at 7.8203 percent.
The bonds will be offered from April 1 to 5, 2019. CPG received the permit to sell from the Securities and Exchange Commission on March 27, 2019.
The Company is targeting to issue the bonds on April 15, 2019. China Bank Capital Corporation is the issue manager, lead underwriter and bookrunner for the transaction.
The issuance is the first corporate PHP Bond deal to price for 2019, according to China Bank Capital President Ryan Martin L. Tapia.
“This is our first corporate debt capital deal since 2014 and we are very pleased with the market reception. We priced the deal at the tighter end of the indicative credit spread given significant interest in this offering,” said CPG Chief Finance Officer relayed by Ponciano S. Carreon.
The net proceeds of the bonds will be used by the company to partially finance development costs of its affordable housing and townhome projects.
CPG undertook a business expansion program five years ago to diversify into allied areas of real estate, including affordable housing and commercial/office leasing, to serve unmet market needs and increase its revenue streams.