CPG sets rate for P3-B bonds

Published February 11, 2022, 3:06 PM

by James A. Loyola

Century Properties Group, Inc. has set the rate for its 5-year fixed rate bond at 5.7524 percent per annum prior to a public offering that aims to raise up to P3 billion.

“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” said CPG’s Chief Finance Officer Ponciano S. Carreon, Jr.

This first tranche of CPG’s P6 billion Debt Securities Program under shelf registration with the Securities and Exchange Commission (SEC) will have a base issue size of P2 billion with an oversubscription option of up to P1 billion.

Set to mature 5 years from listing or in the year 2027, the bonds are expected to be listed and traded through the Philippine Dealing & Exchange Corp. (PDEx) on February 24, 2022.

A total of P1 billion from the proceeds will fund capital expenditures for the horizontal affordable housing developments of PHirst Park Homes, Inc. (PPHI), a joint venture with Mitsubishi Corporation.

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,” said Ryan Martin L. Tapia, President of China Bank Capital Corporation.

He added that, “We are honored to be a reliable partner of the CPG group in achieving its growth ambitions.” China Bank Capital is the Sole Issue Manager, Sole Lead Underwriter and Sole Bookrunner for the Offer.

As of September 2021, CPG’s PPHI unit launched three new projects with total expected revenue of P2.9 billion—strategically located in General Trias, Cavite; Baliwag, Bulacan; and Tayabas, Quezon.

These are in addition to PPHI’s current masterplanned communities located in Tanza, Cavite; Lipa, Batangas; San Pablo, Laguna; Pandi, Bulacan; Calamba, Laguna; Nasugbu, Batangas; and Magalang, Pampanga. The Naic, Cavite project was launched in December 2021, which brings the total masterplanned communities successfully launched by PPHI to 11.

“We are greatly encouraged with the capital markets confidence in CPG and with the continued preference of first-home buyers for our PPHI projects” said CPG President and CEO Jose Marco R. Antonio.

He noted that, “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 commence on February 14, 2022 and end on February 18, 2022.