Listed property developer Century Properties Group Inc. on Tuesday raised P2.7 billion from its maiden retail bond offering.

In an e-mailed statement Tuesday, Century Properties said the proceeds will be used to partly finance capital expenditures for select residential and commercial projects with completion dates ranging from 2017 to 2019.

The company initially targeted to raise P2 billion, but decided to exercise its oversubscription allowance due to strong demand.

“We are grateful for the success of our maiden bond issuance and the confidence accorded to us by the investing public. This is a testament to the company’s sound financial management and profitable business model,” chairman Jose E.B. Antonio said in the statement.

“Not only will the bond enable us to diversify our funding sources, it also helps us get a step closer towards our goal of building a bigger and more diversified company,” he added.

The unsecured fixed rate peso bonds were offered in three-year, five-year, and 7-year tranches with interest rates of 6.0000 percent p.a., 6.6878 percent p.a., and 6.9758 percent p.a., respectively.

BDO Capital & Investment Corp. was tapped as issue manager, while BDO Capital & Investment Corp. and The Hongkong and Shanghai Banking Corp. Limited served as joint lead underwriters and bookrunners.

Primeiro Partners was the financial adviser to the company.

Source: GMA News Online | September 2, 2014