Century Properties lists P3-b bonds, budgets yields for capex and refinancing
Century Properties Group Inc. listed its P3 billion 5-year bond with Philippine Dealing & Exchange Corp. after successful market adoption of the base offering size of 2 billion pesos and the oversubscription option of 1 billion pesos.
“This recently concluded capital markets agreement has been encouraging as it reflects a more optimistic sentiment on the overall national economic and trade outlook. This allowed us to catch benchmark rates at relatively low levels and price the issue at the narrow end of the indicative spread, resulting in a coupon rate of 5.7524% per year,” said CPG Chief Financial Officer Ponciano Carreon Jr.
The issue is the group’s first 6 billion peso peso-registered debt tranche.
“We thank our institutional and retail investors and stakeholders for their continued confidence in Century Properties as we aim for growth in our 36th year in real estate in the Philippines,” said CPG President and CEO Marco Antonio. .
“This will help bring our expansion plans to fruition and make quality homes accessible to more Filipinos through our horizontal affordable housing business, a segment that has remained robust despite the toughest times,” Antonio said.
The company said 1 billion pesos from the proceeds would fund capital expenditures for PHirst Park Homes Inc., a joint venture with Mitsubishi Corp., while the balance would be used for debt refinancing and other general development purposes. the company.
“This highly successful bond issue marks another milestone for Century Properties as it embarks on its post-pandemic expansion. It is also the first single-led corporate bond transaction to list in 2022. China Bank Capital is proud to have delivered the best results to our client, and we are excited about the next phase of business growth,” said Ryan Martin Tapia, President. of China Bank Capital, the sole issue manager, lead manager and bookrunner for the transaction.
“Century Properties is establishing itself as a yield issuer/lister and, unlike its previous issues, is venturing further up the yield curve with this first five-year bond. This indicates CPG’s confidence in the ability of the public debt market to provide financial support to it and has duly reciprocated with this PHP 1 billion oversubscription, a testament to your bond investors,” said Antonino Nakpil, Chairman and CEO of Philippine Dealing & Exchange Corp. .
CPG reported revenues and net profit of 6.1 billion pesos and 815 million pesos in the first nine months of 2021, respectively, with its leasing and PPHI businesses proving resilient and performing above targets.