The Securities and Exchange Commission approved the issuance of up to P3 billion in unsecured fixed-rate retail bonds by Century Properties Group Inc.
CPG said in a disclosure to the stock exchange the SEC favorably considered the issuance of up to P2 billion worth of three-year bonds with an oversubscription of P1 billion.
CPG investor relations head Ponciano Carreon Jr. said the pricing of the bond offering would be finalized next week.
The property firm has tapped Chinabank Capital as the lead issue manager and underwriter of the offering.
CPG plans to use the net proceeds from the bond offering to finance the company’s development of affordable housing projects.
CPG plans to spend P4.15 billion to develop five house and lot projects that will offer more than 7,000 units.
These residential projects are located in San Pablo, Laguna Pandi, Bulacan Calamba, Laguna General Trias, Cavite and San Fernando, Pampanga.
CPG earlier formed a joint venture partnership with Mitsubishi Corp. of Japan to aggressively roll out affordable residential developments under the PHirst Park Homes brand.
CPG announced plans to spend between P8 billion and P9 billion in capital expenditures this year to fund residential and office development projects as well as land acquisition.
CPG in 2018 reported a 72-percent increase in net income to P1.1 billion from P650 million in 2017.
Revenues jumped 60 percent to P10.7 billion from P6.7 billion in 2017, driven by the completion of three residential buildings, an office tower and 259 affordable housing units.
Carreon said the company expects horizontal housing projects to contribute up to 40 percent of revenues over the next three years from the current 10 percent.