Century Properties Group Inc. (CPG), the property firm of former ambassador Jose E.B. Antonio, has completed the listing and issuance of its maiden bond offering on Tuesday, raising P2.7 billion to partly finance the company’s capital expenditures (capex).
In a statement, CPG said it initially planned to raise P2 billion with an oversubscription option of P1 billion via debt sale. Due to strong demand, the oversubscription allowance was exercised, therefore P2.7 billion worth of bonds was listed at the Philippine Dealing and Exchange Corp.
“The company raised P2.7 billion in fresh funds that will be used to partly finance capex for select residential and commercial projects with completion dates ranging from 2017 to 2019, which in aggregate will total over 3,400 residential units and over 300,000 square meters of gross floor area,” CPG said.
Antonio, who is also CPG chairman, said that the strong subscription take-up of the bonds will help the company fund its expansion and diversification projects and plans.
“Not only will the bond enable us to diversify our funding sources, it also helps us get a step closer towards our goal of building a bigger and more diversified company,” Antonio said.
“We are grateful for the success of our maiden bond issuance and the confidence accorded to us by the investing public. This is a testament to the company’s sound financial management and profitable business model,” he added.
The bond offer is divided into three series: three-year bonds with 6 percent interest rate due 2017; five-year bonds to mature in 2020, with an interest of 6.6878 percent, and seven-year bonds with 6.9758 percent interest rate.
CPG appointed BDO Capital & Investment Corp. as its issue manager, while BDO Capital and The Hongkong and Shanghai Banking Corp. Limited are joint lead underwriters and bookrunners. Primeiro Partners was the financial adviser to CPG.
The bonds, which were offered to investors from August 18 to 26, received an AA+ rating with a stableoutlook by the Credit Rating and Investor Services Philippines Inc. (Crisp) last June 6. This signifies a strong capacity to pay debt obligations.
According to the rating, CPG will maintain its hold and diversification in its market segments, as well as receive continued patronage from its overseas Filipino market.
The company said it expects to complete a total of 31 residential buildings from its listing in 2012 to 2019. Its portfolio of launched residential projects is over 90 percent pre-sold.
CPG also expects to complete four commercial buildings, with over 160,000 square meters (sqm) of leasable area, in 2020. These include the world’s first Forbes-branded commercial tower to rise in Makati City; as well as three Class A office buildings with a total of 90,000 sqm, which is seen to transform CPG as one of the leading office space player in the country by 2018.
The firm said it will turn over the 28-storey Centuria Medical Makati by yearend. This is an outpatient IT medical arts building with more than 500 doctors’ clinics and other medical facilities such as a diagnostic laboratory, day surgery center, and pharmacy.
In March, the company opened Century City Mall to the public. It is a 50,000-sqm, five-level lifestyle commercial center — the newest mall in Makati City in nearly a decade.
As of the first half of the year, CPG completed 25 condominiums, amounting to 8,777 units. The company’s projects include Essensa East Forbes in Fort Bonifacio; SOHO Central in the Greenfield District, Mandaluyong City; the Gramercy Residences and Knightsbridge Residences in its flagship Century City, Makati City; and the first three towers of Azure Urban Resort Residences in Paranaque City.
Incorporated in 1975, CPG is involved in the real estate business through its wholly-owned subsidiaries: Century City Development Corp., Century Limitless Corp., Century Communities Corp. and Century Properties Management.