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Developer Century Properties Group Inc. closed on June 10 a dual-currency secured term loan facility amounting to P4.2 billion to fund its pre-sold projects.
In a disclosure Tuesday, the company said the proceeds from the transaction will be used to meet the construction costs, land cost, general expenditure and financing costs exclusive to seven buildings in three project developments.
Jose Carlo R. Antonio, Century Properties CFO, said the secured loan facility "significantly" lowers the company's cost of debt.
The interest rate of the facility is "three month PDST + 4.00 percent, or the BSP (Bangko Sentral ng Pilipinas) Overnight Rate + 2.00 percent, whichever is higher, significantly brings down CPG’s financing costs," he said.
Antonio also said the facility will also finance the company's seven pre-sold projects that are targeted to be turned over between 2015 to 2017.
"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,” Antonio added.
Standard Chartered Bank was as the lead arranger and book runner for the transaction. The facility, targeted at both domestic and international banks, received both US dollar and Philippine peso commitments.
Primeiro Partners was the financial advisor to CPG.
In the first quarter, Century Properties posted a 10 percent jump in net income to P501 million from P454 million year-on-year while total revenues grew by 5 percent to P2.6 billion from P2.5 billion.
Earlier this year, it announced three-year profit guidance reflecting an annual growth rate of 15 percent and P30 billion in pre-sales and net income of P3 billion by 2015. — Danessa Rivera/VS, GMA News