Century Properties Group Inc. listed its 5-year P3-billion bonds at Philippine Dealing & Exchange Corp. after a successful market take-up of the P2-billion base offer size and P1-billion oversubscription option.
“This recently concluded capital markets deal has been encouraging as it reflects a more upbeat sentiment on overall domestic business and economic prospects. This has allowed us to catch the benchmark rates at comparatively low levels and price the issuance at the tight end of the indicative spread, translating into a coupon rate of 5.7524 percent per annum,” said CPG chief finance officer Ponciano Carreon Jr.
The issuance is the first tranche of the group’s P6-billion SEC shelf-registered debt instruments.
“We thank our institutional and retail investors and stakeholders for their continued confidence in Century Properties as we set our sights on growth on our 36th year in Philippine real estate,” said CPG president and chief executive Marco Antonio.
“This will help bring to fruition our expansion plans and make quality homes accessible to more Filipinos through our horizontal affordable housing business, a segment that has remained robust though the toughest of periods,” Antonio said.
The company said P1 billion from the proceeds would fund capital expenditures of PHirst Park Homes Inc., a joint venture with Mitsubishi Corp., while the balance will be allocated to debt refinancing and other general corporate purposes.
“This highly successful bond offering marks another milestone for Century Properties as it embarks on its post-pandemic expansion. It is also the first sole-led corporate bond deal to list in 2022. China Bank Capital is proud to have delivered the best results for our client, and we are excited for the company’s next phase of growth,” said Ryan Martin Tapia, president of China Bank Capital, the sole issue manager, lead underwriter and bookrunner for the transaction.
“Century Properties is establishing itself as a return issuer/lister and unlike its previous issuances is venturing further out the yield curve with this, its first bond at the five-year tenor. This indicates CPG’s confidence in the public debt market’s capability to provide it funding support and duly reciprocated with that PHP 1 billion oversubscription, a testament from your bond investors,” said Antonino Nakpil, president and chief executive of Philippine Dealing & Exchange Corp.
CPG reported revenues and net income of P6.1 billion and P815 million in the first nine months of 2021, respectively, with its leasing businesses and PPHI proving to be resilient and performing above targets.