Century Properties returns to the local bond market to borrow P3B

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Century Properties Group Inc. (CPG), run by the Antonio family, plans to return to the local bond market with a supply of up to Peso 3 billion of debt securities, freezing low-cost funds to pay off more expensive debts and finance expansion programs.

CPG has filed with the Securities and Exchange Commission (SEC) to raise up to 6 billion pesos from the sale of retail bonds to the investing public over the next three years.

The first tranche will include up to 3 billion pesos of five-year bonds, with a base offering of 2 billion pesos and an option to increase by 1 billion pesos in the event of strong demand.

These new debt securities maturing in 2027 are intended to be listed on the local fixed income platform, Philippine Dealing & Exchange Corp. Chinabank Capital is the sole issue manager, principal underwriter and bookrunner.

Falling interest rates

About 1 billion pesos of the net proceeds would be used to settle maturing bonds bearing an interest rate of 7.8203 percent by April 15 next year, based on the prospectus submitted to the SEC .

In 2019, CPG issued PPA 3 billion in three-year bonds to finance the deployment of affordable housing and townhouse projects. Since then, local interest rates have fallen to record highs, creating an opportunity for business borrowers like CPG to replace older, more expensive debt.

About 959 million pesos of net proceeds would also be used for CPG’s capital spending for 2022. The budget includes funding for future horizontal and affordable housing development projects in Cavite and Bataan.

33 completed projects

If the over-allotment option is exercised, the remainder of the proceeds will be used to finance the general needs of the business.

By the end of September, CPG had completed 33 projects, namely: 29 residential projects, consisting of 17,169 units and a total gross floor area of ​​1.32 million square meters. He also developed a retail commercial building, a medical office building and two office buildings.

CPG also completed 2,814 units under its affordable housing segment. These are in addition to the 19 buildings made up of 4,128 units for a total of 548,262 m² which had been completed before 2010 by the Meridien Group of Companies, the former company of the main founders. INQ

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