Century Properties prices 3-year bonds at 7.8203%

CENTURY Properties Group, Inc. (CPG) has set the coupon rate for its P3-billion fixed-rate retail bonds at 7.8203% per annum.
In a statement issued Thursday, the Antonio-led property developer said it will offer the three-year bonds from April 1 to 5, after the Securities and Exchange Commission approved its permit to sell on March 27. The bonds, which are unsecured, will be issued on April 15.
The offering consists of a base size of P2 billion, with an oversubscription option of up to P1 billion. The bonds will mature in 2022.
China Bank Capital Corp., the offering’s issue manager, lead underwriter, and bookrunner, said the bonds are already more than twice oversubscribed.
“The issuance was more than twice oversubscribed and the first corporate Philippine bond deal to price for 2019,” CPG quoted ChinaBank President Ryan Martin L. Tapia as saying in a statement.
CPG Chief Finance Officer and Head for Investor Relations Ponciano S. Carreon said they are “very pleased” with the market reception, given that this is the firm’s first debt capital deal since 2014.
“We priced the deal at the tighter end of the indicative credit spread given significant interest in this offering,” Mr. Carreon said in a statement.
The listed firm plans to use the proceeds to partially finance its affordable housing projects under Phirst Park Homes, Inc., its joint venture firm with Japan’s Mitsubishi Corp. It will also procure project construction and contract to sell credit facilities in case there’s additional needs for funding.
CPG has five affordable housing projects lined up for 2019, located in San Pablo, Laguna; Pandi, Bulacan; Calamba, Laguna; General Trias, Cavite; and San Fernando, Pampanga.
These projects will deliver a total of 7,026 housing units across a total of 76.5 hectares.
CPG plans to launch 33,000 units valued at about P57 billion within the next four to five years for its affordable segment. Meanwhile, it plans to add 133,000 square meters (sq.m.) to its commercial leasing business in order to reach its goal of have 300,000 sq.m in leasable spaces by 2020.
To support its expansion program, CPG has allotted to spend P8-10 billion in capital expenditures to finance residential and office projects as well as land acquisitions.
The company’s net income reached P1.1 billion in 2018, 72% higher than the P650 million it reported in 2017. This came amid a 60% increase in revenues to P10.7 billion. CPG benefited from its diversification into affordable housing projects and office leasing, since it previously focused only on high-rise residential condominiums in Metro Manila.
Shares in CPG jumped 1.92% or a centavo to close at 53 centavos each at the stock exchange on Thursday. — Arra B. Francia