The Securities and Exchange Commission (SEC) has approved the planned issuance by Century Properties Group Inc. (CPGI) of up to P5 billion worth of preferred shares subject to some conditions.

In a disclosure to the Philippine Stock Exchange (PSE), CPGI said it has received the Pre-Effective Letter from the SEC favorably considering the company’s application for the planned preferred share offering.

This consists of a Primary Offer of up to 30 million Series B Preferred Shares with an Oversubscription Option of up to 20 million Series B Preferred Shares at an offer price of P100 per share. 

The SEC approval is subject to the company’s submission of the Final Prospectus and Transaction Agreements as well as compliance to such other conditions as the commission may impose or require.

CPGI said it has likewise filed an application for the listing of the Offer Shares with the PSE.

Last July, CPGI had fully redeemed its P3 billion Cumulative, Non-Voting, Non-Convertible, Non-Participating, Redeemable peso-denominated Preferred Shares issued and listed three years ago.

The Preferred Shares were redeemed at its redemption price of P100 per share, pursuant to the terms set out in the Prospectus dated Dec. 12, 2019.

“The full redemption of the Preferred Shares is part of our strategic program that is anchored on prudent financial management and debt reduction with the goal of strengthening our balance sheet to support our growth expansion,” said CPG Chief Finance Officer Ponciano S. Carreon Jr. 

He added that, “we continue to see an active and liquid domestic capital markets and we intend to tap the same if needed for our capital funding purposes.” 

CPG’s outstanding total debt as of the end of December 2022 was down to P17.3 billion, from P18.4 billion the previous year due to repayment of P1.1 billion short-term and long-term debt.

In April 2022, CPG also redeemed its P3 billion fixed-rate retail bonds.