Century Properties prices P3-B bonds at 7.82%

Antonio-led real estate developer Century Properties Group Inc. (CPG) on Thursday said it fixed the yield on its three-year unsecured fixed rate peso retail bonds at 7.8203 percent.

CPG aims to raise P3 billion from the retail bonds issuance, which are due in 2022.

The bonds will be offered from April 1 to 5, 2019.

The property developer received the permit to sell from the Securities and Exchange Commission on March 27.

CPG is targeting to issue the bonds on April 15.

China Bank Capital Corp. is tapped as the issue manager, lead underwriter and bookrunner for the transaction.

The issuance was more than twice oversubscribed and the first corporate Philippine peso bond deal to price for 2019, according to Ryan Martin Tapia, president of China Bank Capital.

“This is our first corporate debt capital deal since 2014 and we are very pleased with the market reception. We priced the deal at the tighter end of the indicative credit spread given significant interest in this offering," said GPG chief finance officer and head for Investor Relations Ponciano Carreon.

The net proceeds of the bonds will be used to partially finance development costs of its affordable housing and townhome projects, according to the company.

CPG undertook a business expansion program five years ago to diversify into allied areas of real estate, including affordable housing and commercial/office leasing, to serve unmet market needs and increase its revenue streams.

“The strategic move is now yielding very positive results and we expect to sustain this growth momentum in the coming years,” said CPG chief operating officer Jose Marco Antonio.

The company reported a 72-percent expansion in its 2018 net income of P1.1 billion from P650 million in 2017. — BM, GMA News