SEC approves CPG’s P3 B bond issue

Antonio-led Century Properties Group has been given permission to sell P3 billion in fixed rate retail bonds.

The bonds represent the company’s second tranche offer amounting to P2 billion, with an oversubscription option of up to P1 billion.

The bonds have the following gross interest rates: 6.5760 percent per annum for the three-year bonds or the Series A bonds; 7.4054 percent per annum for the five year Series B bonds, and 7.680 percent per annum for the Series C bonds.

The latest tranche, to be offered from March 6 to 10, comprises the second tranche of the P6 billion debt program under the SEC’s shelf registration program.

The second tranche offer has received a AA+ issue rating upgrade from local debt watcher Credit Rating and Investors Services Philippines Inc. (CRISP).

The AA+ rating reflects the company’s very strong capacity to repay debts, according to CRISP.

CRISP said CPGI has a diversified market portfolio and a strong, growing presence in the market.

CPGI successfully made its foray into the affordable horizontal development market in 2017, which provided opportunities for the company to capture a share in a traditionally reliable property market segment.

In the vertical housing segment, CPGI has 30 vertical housing developments with a total ground floor area of over 1.24 million square meters and a total of 17,481 residential units completed.

At the center of the diversification is the company’s joint venture brand with the Mitsubishi Corp., PHirst Park Homes.

As of end-2022, PHirst Park Homes had sold 13,983 units valued at P24.6 billion and completed 6,002.

To capitalize on the success of PHirst Park Homes, CPGI is expanding the offerings of its first home buyer brand PHirst to venture into the socialized, economic, and mid-income residential markets.

PHirst is also introducing its version of a mixed-use format.

CPGI also includes five leasing assets with gross leasable area of 146,670 square meters.

These include the Century City Mall, Centuria Medical Makati, Asian Century Center, Century Diamond Tower and the recently opened Novotel Suites. Manila.

CPGI issued the first tranche of the fixed-rate retail bonds amounting to P3 billion last year, proceeds of which were allocated for refinancing and to fund capital expenditures for its horizontal projects.