Century Properties Group Inc. (CPGI) yesterday reported it secured a five-year dual-currency term loan of P4.2 billion.
The company said the proceeds of the loan will be used to finance the building of seven buildings located across three project developments of CPG.”
“The facility was targeted to both domestic and international banks and received commitments both in US dollar and Philippine peso,” it said.
“This secured term loan facility accomplishes a few milestones for CPG. First, it lowers CPG’s cost of debt as the facility’s rate of three-month PDST + 4 percent, or the BSP Overnight Rate + 2 percent, whichever is higher, significantly brings down CPG’s financing costs. Second, the Facility secures the working capital needs of seven pre-sold projects that are targeted to be turned over between 2015 and 2017,” said Jose Carlo R. Antonio, CPG chief finance officer.
“In addition, it provides CPG financial flexibility by allowing profits from completed and soon to be completed projects, as well as funds raised from CPG’s recent equity placement, to embark on growth opportunities to enhance shareholder value,” he added. The facility was managed by Standard Chartered Bank, while Primeiro Partners served as the financial advisor to CPG.
Source: Malaya Business News | June 12, 2013