Century Properties Group (CPG) launched a public offer on Friday for up to P5 billion in fixed-rate retail bonds to fund a nationwide expansion of its residential portfolio.
The issuance is the first tranche of a P12-billion shelf registration program approved by the Securities and Exchange Commission. The company plans to sell an initial P3 billion worth of bonds with an oversubscription option for another P2 billion, marking its sixth bond issuance.
The public offer runs from Feb. 6 to Feb. 12, with a listing on the Philippine Dealing & Exchange Corp. scheduled for Feb. 20.
The company set interest rates at 6.5080 percent per annum for the four-year Series D bonds due in 2030 and 7.6280 percent per annum for the seven-year Series E bonds due in 2033.
Proceeds from the fund raising will finance capital expenditures for the Mykonos residential project in San Fernando, Pampanga and six PHirst projects in Bulacan, Batangas, Laguna and Davao del Norte.
CPG also intends to launch two premium projects and five PHirst projects this year, which are expected to generate P53.5 billion in revenues.
“The strong demand for our retail bond issuance reflects investor confidence in our long-term strategy and our ability to execute consistently across market cycles,” CPG president and chief executive Marco Antonio said.
Credit Rating Investors Services Philippines Inc. assigned the bonds an AA+ rating with a positive outlook ahead of the sale.
