CENTURY Properties Group, Inc. (CPG) has set the rate for its P3-billion, five-year fixed-rate bond at 5.7524% per annum, citing “strong capital markets.”

The bond comprises a P2-billion base offer with an oversubscription option of up to P1 billion.

“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,” CPG Chief Finance Officer Ponciano S. Carreon said in a statement on Monday.

The offer period for CPG’s bond offering will end on Friday, Feb. 18. Its listing at the Philippine Dealing & Exchange Corp. is set to Thursday next week, Feb. 24.

China Bank Capital Corp., sole issue manager, sole lead underwriter, and sole bookrunner of the offer, expects the offering to “be very well received” by investors.

“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,” China Bank Capital President Ryan Martin L. Tapia said.

CPG said P1 billion of the proceeds from the offering will be used for the horizontal affordable housing projects of PHirst Park Homes, Inc. (PPHI), a joint venture with Mitsubishi Corp.

“We are greatly encouraged with the capital markets confidence in CPG and with the continued preference of first-homebuyers for our PPHI projects,” CPG President and Chief Executive Officer Jose Marco R. Antonio said.

“For this year, we will be launching four new master planned communities to serve the strong demand for quality affordable homes,” he added.

PPHI has launched three projects in Cavite, Bulacan, and Quezon as of September last year, which brought a total expected revenue of P2.9 billion. It launched another Cavite project in December 2021.

PPHI currently has 11 master planned communities, which are located in Batangas, Bulacan, Cavite, Laguna, and Pampanga.

Meanwhile, the balance will be used to partially refinance debt and other general corporate purposes.

The P3-billion offering is the initial tranche of the company’s shelf-registered P6-billion debt securities program shelf-registered with the Securities and Exchange Commission.

On Monday, CPG shares at the stock market closed unchanged at 42 centavos apiece. — Keren Concepcion G. Valmonte

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