Property developer Century Properties Group Inc. is raising up to P3 billion from the sale of fixed retail bonds.
Century Properties said in a disclosure to the stock exchange its board approved the public offering of unsecured fixed-rate peso denominated retail bonds worth P2 billion, with an option for P1-billion oversubscription.
“This maiden bond issuance is a major milestone in our corporate history,” said Century Properties chief financial officer Jose Carlo Antonio.
“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,” he said.
The bonds with tenors of three years, five years and seven years will be registered with the Securities and Exchange Commission and be listed with Philippine Dealing and Exchange Corp.
The company said it would use proceeds to partially finance capital expenditures for a portion of Century Properties’ projects scheduled for completion between 2017 and 2019.
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,” Century Properties chairman and chief executive Jose Antonio said.
“In addition, 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.”
Source: Manila Standard Today | June 21, 2014