Century Properties to borrow P4.2 billion

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Listed real-estate developer Century Properties Group Inc. has tapped a P4.2-billion loan facility to finance the construction of seven buildings located across its three project developments.

In a disclosure to the Philippine Stock Exchange, Century Properties reported that it has closed a five-year dual-currency secured term loan facility of up to P4.2 billion.

The proceeds from the transaction, according to the high-end developer, will be used to meet the construction costs, land cost, general expenditure and financing costs exclusive to seven buildings located across its three project developments.

The lead arranger and book runner for the five-year loan facility was lead by Mandated Lead Arranger and Book is Standard Chartered Bank.


Jose Carlo Antonio, chief financial officer of Century Properties, said that the secured term loan facility lowers the firm’s cost of debt, since its rate of three-month PDST + 4 percent, or the Bangko Sentral Pilipinas Overnight Rate + 2 percent, whichever is higher, significantly brings down the company’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,” Antonio said.

“In addition, it provides Century Properties financial flexibility by allowing profits from completed and soon to be completed projects, as well as funds raised from our recent equity placement, to embark on growth opportunities to enhance shareholder value,” he added.

Primeiro Partners is the financial advisor to Century Properties.

Earlier this year, Century Properties raised P1.6 billion through an overnight equity placement involving 800 million of its shares.

The real-estate firm use the proceeds from the placement to fund its ongoing land banking within Metro Manila and expansion of its projects outside the metropolis.
Antonio said that the placement was priced at P2.05 a share.

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