Century Properties Group Inc. is planning to raise up to P3 billion from a public offering of unsecured fixed-rate peso denominated retail bonds.
In a disclosure to the Philippine Stock Exchange, the firm said its Board of Directors has approved the plan to offer P2 billion worth of retail bonds with an Oversubscription Option of up to P1 billion.
The firm had also raised P3 billion at the start of the year from its follow-on offering of preferred shares to fund the expansion of its commercial leasing business.
CPG’s largest equity capital markets transaction to date was twice oversubscribed over the P2 billion base issue size, thereby allowing the company to fully exercise its P1 billion oversubscription option.
China Bank Capital Corporation was Sole Issue Manager, Lead Underwriter, and Sole Bookrunner of the offering.
CPG also raised funds early last year through a bond offering to grow the company’s affordable housing business.
Commercial leasing and affordable housing are two allied real estate segments that CPG is growing as part of its plans to diversify its real estate portfolio from being primarily focused on high-rise condominium developments and build a stronger firm with well-balanced sources of revenue.
Each segment is estimated to contribute at least 30 percent of CPG's net income in the next 3 years.(James A. Loyola)