SEC greenlights P6-B bond issue of Century Properties

The Securities and Exchange Commission (SEC) has approved the P6-billion bond shelf registration of Antonio-led property developer Century Properties Group Inc.

Century Properties will immediately float half of the said shelf registration, issuing up to P2 billion of five-year fixed-rate bonds due 2027, and an oversubscription option of up to P1 billion.

The SEC approved the said registration statement during its en banc meeting on Tuesday.

The remaining tranche may be floated by the property developer in one or several tranches within three years.

Proceeds of the first tranche will be used to partially refinance the company’s debt, fund capital expenditures for horizontal affordable housing developments and other general corporate requirements.

Century Properties will offer the bonds comprising the first tranche at face value from February 14 to 18, in time for their listing on the Philippine Dealing and Exchange Corp. on February 24, according to the latest timetable submitted to the SEC.

The company has engaged China Bank Capital Corp. as the sole issue manager, sole lead underwriter and sole bookrunner for the offer.

The company said it will allocate some P1 billion for the refinancing of its bonds that carry an interest rate of 7.8203 percent, which will mature by April.

Century Properties also allocated some P959 million to fund its capital expenditures for its projects and P985 million for its general corporate requirements.

“The company’s capital expenditure for 2022 includes the funds needed for future horizontal affordable housing development projects in Cavite and Bataan. The net proceeds from this offering will be disbursed to the respective operating subsidiaries of the company to partially finance the residential and commercial projects.”

The company has been focusing on its horizontal developments after it ran out of projects for its high-rise buildings.

Its horizontal projects are mainly carried out through Phirst Park Homes Inc., a joint venture between Century Properties and Mitsubishi Corp. It sells horizontal affordable homes, with previously launched communities in Tanza, Cavite; Lipa, Batangas; San Pablo, Laguna; Calamba, Laguna; Nasugbu, Batangas; Magalang, Pampanga; General Trias, Cavite; and Tayabas, Quezon.

Century Properties and and Mitsubishi earlier extended its partnership through Phirst Park as they seek to build more residential and non-residential projects.

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The article was originally published in Business Mirror and written by VG Cabuag.