Property developer Century Properties Group Inc. plans to raise P3 billion from the issuance of fixed-rate bonds, the company said in a stock exchange filing Wednesday.
CPG said it would issue P2 billion in fixed-rate bonds, plus an oversubscription for another P1 billion as second and final tranche from its P6-billion debt securities program approved by the Securities and Exchange Commission.
The bonds will be comprised of three-year Series A due 2026, five-year Series B due 2028 and seven-year Series C due 2030.
CPG said it would use the proceeds from the fund raising activity to redeem P1 billion worth of preferred shares to fund capital expenditures for new horizontal affordable housing projects and fund general corporate requirements.
Credit Rating and Investors Services Philippines Inc. assigned a credit score of “AA+” to the proposed bond offering.
CRISP said that in assigning the credit rating, it considered the company’s diversified market portfolio and a strong, growing presence in the affordable housing market.
“CPG’s entry into the horizontal affordable housing development market in 2017 provided opportunities for the company to capture a share in a traditionally reliable property market segment,” CRISP said.
CPG plans to launch new house-and-lot projects in Bulacan in 2023.
CRISP said the group has a strong market position in the condominium market with 30 vertical housing developments with a total ground floor area of over 1.24 million square meters and 17,481 residential units completed.
CPG’s portfolio also includes five leasing assets with total gross leasable area of 146,670 square meters. These include the Century City Mall, Centuria Medical Makati, Asian Century Center, Century Diamond Tower and the recently-opened Novotel Suites Manila.
The bonds will be listed on the Philippine Dealing & Exchange Corp.
CPG engaged China Bank Capital as the sole issue manager, sole underwriter and sole book runner for the offering.
