Century Properties Group Inc. set the rate for its P3 billion, five-year fixed rate bond offering at 5.7524 percent per annum.
“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 Carreon Jr.
The first tranche of CPG’s P6-billion debt securities program under shelf registration with the Securities and Exchange Commission will have a base issue size of P2 billion, with an oversubscription option for another P1 billion, and will mature five years from listing or in the year 2027.
The bonds are expected to be listed and traded through Philippine Dealing & Exchange Corp. on Feb. 24, 2022.
The company said P1 billion from the proceeds will fund capital expenditures for the horizontal affordable housing developments of PHirst Park Homes Inc., a joint venture with Mitsubishi Corp.
The balance of the 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. We are honored to be a reliable partner of the CPG group in achieving its growth ambitions,” said Ryan Martin Tapia, president of China Bank Capital Corp., the sole issue manager, sole lead underwriter, and sole bookrunner for the offer.
CPG said that as of September 2021, PPHI launched three new projects with total expected revenue of P2.9 billion. These projects are strategically located in General Trias, Cavite; Baliwag, Bulacan; and Tayabas, Quezon.
The projects are in addition to PPHI’s masterplanned communities 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 brought 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 chief executive Jose Marco Antonio.
“For this year, we will be launching four new masterplanned communities to serve the strong demand for quality affordable homes,” Antonio said.
The public offer period for CPG’s bond offering will commence on Feb. 14 and end on Feb. 18.