Century Properties to issue P3 B retail bonds

MANILA, Philippines - Century Properties Group Inc. (CPG) will issue up to P3 billion worth of unsecured fixed-rate peso-denominated retail bonds to partly fund its capital expenditures for 2017 to 2019.

In a disclosure to the Philippine Stock Exchange, CPG said its board approved the issuance of P2 billion worth of three-, five-, and seven-year bonds with an oversubscription option of up to P1 billion.

BDO Capital & Investment Corp was tapped as issue manager, with HSBC as joint underwriters and bookrunners.

Primeiro Partners is the financial advisor on the transaction. The bonds will be listed on the Philippine Dealing and Exchange Corp.

The final terms, issue size, interest rates and other details relative to the issuance have yet to be firmed up, CPG said.

In a statement, CPG said proceeds from the issue would be used for the construction of more than 3,250 residential units and about 90,000 square meters of commercial space for lease.

CPG chairman and CEO Jose E.B. Antonio said the company expects to complete 31 buildings covering 1.67 million square meters and over 150,000 square meters of commercial space for lease by 2019.

Apart from this, the company has a landbank of 200 hectares to develop in Metro Manila. It continues to be on the lookout for other growth opportunities to boost its cashflow.

“We are looking at other promising areas in the country. We are proud of what we have accomplished and are excited to continue the successes of years past,” Antonio said.

The bond was assigned an AA+ issue rating by Credit Rating and Investors Services Philippines (CRISP) given CPG’s strong market presence, healthy financial position, and excellent land banking strategy.” The rating means that CPG has very strong capacity to repay debt obligations.

CRISP expects CPG to maintain its hold on its market segments and continue to diversify such segments further

 â€œThis maiden bond issuance is a major milestone in our corporate history.  It is in line with our strategy to diversify our funding base and pursue growth opportunities that enhance returns to shareholders over the medium and long term,” said  Jose Carlo R. Antonio, CFO at CPG.