Century Properties Group returns to retail bond market

The publicly-listed property developer Century Properties Group, Inc. (CPG:PM) has announced that it raised P3.0 billion in fresh funds from its latest bond offering, which was more than twice oversubscribed from the base offer.

At the company’s virtual listing ceremony today at the Philippine Dealing and Exchange Corp., CPG said the three-year unsecured Peso-denominated fixed rate retail bonds, carrying a coupon rate of 4.8467% per annum, were well received by investors that CPG had to exercise its P1.0 billion oversubscription option from a base size of P2.0 billion.

CPG’s Chief Finance Officer and Head for Investor Relations Ponciano S. Carreon, Jr. said significant interest in the offering moved the pricing at the tighter end of the marketing spread range. Proceeds from the issuance will be used to partially refinance bank term loans, finance the company’s capital expenditures for vertical developments, and fund general corporate purposes including, but not limited to, working capital.

“We at Century Properties Group thank our institutional and retail investors, transaction parties, working group, and stakeholders for their continued trust in the company. The success of this fundraising is because of our collective hard work and your continued support and confidence in the growth of CPG,” said CPG President and CEO Marco R. Antonio. He added: “The business environment is currently challenged by the global pandemic, but we are optimistic about a future where CPG creates New Generation Real Estate that is responsive to the needs of the times.”

“This bond issuance is our third consecutive capital market transaction for CPG, and we are very pleased with the market’s strong reception to this offering. It is a testament to investors’ confidence in the company amidst a challenging economic backdrop as well as support for its growth initiatives and expansion strategy,” said Ryan Martin L. Tapia, President of China Bank Capital Corporation. China Bank Capital Corporation is the sole issue manager, sole lead underwriter and sole bookrunner for the transaction.

The company has maintained strong earnings with a net income of P1.1 billion for the first nine months of 2020 and P558.7 million from the third quarter alone—which is 65% higher than the net income from the third quarter of 2019, supported by the strong performance of its affordable housing and leasing segments.