Century Properties prices bonds

Century Properties Group Inc., the Antonio-led property developer, has priced its 2022 three-year unsecured fixed rate peso retail bonds at 7.8203 percent.

CPG has already received its permit to sell from the Securities and Exchange Commission. It will offer the bonds from April 1 to 5.

The company is targeting to issue the bonds on April 15.

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

Investors swarmed the deal which was more than twice oversubscribed, China Bank Capital Corp. president Ryan Martin Tapia said.

”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 Ponciano Carreon, chief finance officer and head for Investor Relations of CPG.

CPG, which recently diversified into lower priced residential segments and tourism from just an upscale developer, will use the proceeds of the bond sale for its various expansion projects.

“The net proceeds of the bonds will be used to partially finance development costs of its affordable housing and townhome projects,” Carreon said.

CPG chief operating officer Jose Marco Antonio said the company’s diversification was paying off.

“We 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,” he said.

Such a strategic move is now yielding very positive results and we expect to sustain this growth momentum in the coming years, Antonio said.

Last week, CPG reported that its net income surged 72 percent to P1.1 billion. Affordable housing contributed 23 percent of CPG’s net earnings last year.

The company’s affordable housing business will launch 33,000 units with a sales value of P57 billion in the next four to five years.

Its leasable area will grow to 300,000 square meters of gross floor area by 2020 from 133,000 sqm.