Century Properties raises P3 billion from bond issue

Iris Gonzales (The Philippine Star) - March 3, 2021 - 12:00am

MANILA, Philippines — Century Properties Group Inc., the real estate firm of the Antonio Group, raised P3 billion in fresh funds following an offering of fixed rate bonds.

Proceeds from the issuance will be used to partially refinance bank term loans, finance the company’s capital expenditures for vertical developments, and fund general corporate purposes, including working capital, CPG president and CEO Marco Antonio said Monday.

“The success of this fundraising is because of our collective hard work and investors continued support and confidence in the growth of CPG,” Antonio said.

The latest bond offer was more than twice oversubscribed from the base offer of P2 billion. Thus, the company exercised its P1 billion oversubscription option.

The three-year unsecured peso-denominated fixed rate retail bonds, carrying a coupon rate of 4.8467 percent per annum, were well received by investors, company officials said during the  virtual listing of the bonds at the Philippine Dealing and Exchange Corp.

Strong interest moved the pricing at the tighter end of the marketing spread range, CPG chief finance officer and head for investor relations Ponciano Carreon Jr. said.

Carreon said while the business environment is currently challenged by the global pandemic, the company is optimistic about a future where CPG creates new generation real estate that is responsive to the needs of the times.

The bond issuance marks the third consecutive capital market transaction for CPG.

“We are very pleased with the market’s strong reception to this offering. It is a testament to investors’ confidence in the company amidst a challenging economic backdrop, as well as support for its growth initiatives and expansion strategy,” said Ryan Tapia, president of China Bank Capital Corp.

CPG tapped China Bank as sole issue manager, sole lead underwriter and sole bookrunner for the transaction.

The company has maintained strong earnings with a net income of P1.1 billion in the first nine months of 2020 and P558.7 million in the third quarter alone.

Growth was supported by the strong performance of its affordable housing and leasing segments.

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