Century Properties Group Inc. intends to sell up to P3 billion worth of fixed-rate retail bonds, the company said in a disclosure to the Philippine Stock Exchange Friday.

The property developer said its board members approved the public offering of peso retail bonds during a special meeting late Thursday.

The unsecured fixed-rate retail bonds will amount to P2 billion, plus an option for oversubscription of P1 billion.

The bonds, with tenors of three, five and seven years, will be registered with the Securities and Exchange Commission and listed on the Philippine Dealing & Exchange Corp.

Net proceeds of the bonds will be used to partly fund capital expenditures for projects to be completed between 2017 and 2019, involving over 3,250 residential units, and 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,” chairman and CEO Jose E.B. 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,” he added.

BDO Capital & Investment Corp was appointed as issue manager and, with HSBC, as joint underwriters and book runners.

Primeiro Partners is advising Century Properties on the financial aspects of the transaction.

As of June 6, 2014, Credit Rating and Investors Services Philippines Inc. (CRISP) assigned the bonds with an ‘AA+’ rating with a stable outlook. “Century’s strong market presence, healthy financial position, and excellent land banking strategy,” according to the debt-watcher.

An ‘AA+’ rating denotes a very strong capacity to repay debt obligations.

“This maiden bond issuance is a major milestone in our corporate history,” said Jose Carlo R. 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.”

Source: GMA News Online | June 20, 2014