Century Properties Group Inc. successfully raised P2.7 billion from a bond offering, its issue manager said Wednesday.

BDO Capital and Investments Corp. president Eduardo Francisco said in a text message the bond issue was met by  strong demand, prompting Century Properties to exercise a portion of the overalloment option.

“We are still reconciling last- minute orders but [we will raise] about P2.7 billion and we are happy with the investor demand.’’

The bond’s offering period ended Tuesday. The bonds will be listed with Philippine Dealing and Exchange Corp. on Sept. 2.

Century Properties issued unsecured fixed rate peso retail bonds worth P2 billion with an oversubscription option of up to P1 billion.

The bonds were offered at tenors of 3 years at a fixed interest rate of 6 percent annually, 5 years with interest rate of 6.6878 percent and 7 years at 6.9758 percent.

Century Properties plans to use the proceeds of the bonds to partially finance capital expenditures on a portion of projects scheduled for completion between 2017 and 2019. The projects include over 3,250 residential units and about 100,000 square meters of commercial space for lease.

The property firm earlier announced plans to diversify into commercial development, including retail, medical and office projects, to increase recurring and predictable revenue streams.

Source: Manila Standard Today | August 28, 2014