Century Properties Group, Inc. is planning to raise up to P3 billion through the issuance of unsecured fixed rate peso retail bonds with tenors of 3 years, 5 years, and 7 years.
In a disclosure to the Philippine Stock Exchange, Century said it will test the waters with P2 billion worth of bonds and has an oversubscription option of up to P1 billion.
The net proceeds of the bonds will be used to partially finance capital expenditures for a portion of Century’s projects scheduled for completion between 2017 to 2019.
In particular, the projects include over 3,250 residential units, and about 90,000 square meters of commercial space for lease.
“By 2019, Century will have completed 1.67 million square meters of development, consisting of 31 buildings and over 150,000 square meters of commercial space for lease,” said Century chairman Jose E.B. Antonio stated.
He added that “we have a landbank of 200 hectares to develop in Metro Manila, and 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.”
Credit Rating and Investors Services Philippines, Inc. (CRISP) has assigned an ‘AA+’ issue rating with a stable outlook on the bonds due to “Century’s strong market presence, healthy financial position, and excellent land banking strategy.”
It added that Century will be able to maintain its hold on its market segments and continue to diversify such segments further. Based on CRISP’s rating scale, an ‘AA+’ rating denotes very strong capacity to repay debt obligations.
“This 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 Century chief financial officer Jose Carlo R. Antonio.
BDO Capital & Investment Corporation was appointed as issue manager. BDO Capital and HSBC were also engaged as joint underwriters and bookrunners.
Primeiro Partners is Century’s financial advisor on the transaction. The bonds will be listed on the Philippine Dealing and Exchange Corporation.
Source: Manila Bulletin | June 22, 2014