Century Properties Group Inc. (CPG) plans to debut on the local bond market with a retail offering worth as much as P3 billion from a local offering of retail bonds, boosting funds for its expansion program.

In a disclosure to the Philippine Stock Exchange on Friday, CPG said its board had approved a plan to offer to the public unsecured fixed-rate peso denominated retail bonds worth at least P2 billion with an option to upsize by P1 billion.

The board also authorized CPG to apply for the registration and licensing of the bonds at the Securities and Exchange Commission and the listing of these bonds at the floor of Philippine Dealing and Exchange Corp.

“This maiden bond issuance is a major milestone in our corporate history,” said Jose Carlo Antonio, CPG’s chief financial officer. “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.”

The bonds will be offered with tenors of three, five and seven years.
BDO Capital and Investment Corp. was appointed issue manager. BDO Capital and HSBC were also engaged as joint underwriters and bookrunners. Primeiro Partners is Century’s financial adviser on the transaction.

Proceeds from the offering will be used to partially finance capital expenditures for a portion of Century’s projects scheduled for completion between 2017 and 2019. In particular, the projects include more than 3,250 residential units and about 90,000 square meters of commercial space for lease.

Source: Philippine Daily Inquirer | June 22, 2014