Century Properties lists P5B retail bonds on PDEx

Century Properties Group, Inc. (CPG) has listed P5 billion worth of fixed-rate retail bonds on the Philippine Dealing & Exchange Corp. (PDEx).

This is the firm’s latest fundraising move under its existing debt securities program and its sixth listing on the local fixed-income exchange.

In a statement on Friday, the property developer said that the first tranche of its retail bond offer consisted of P3 billion. There was an oversubscription option of up to P2 billion, which was fully exercised amid strong investor demand.

The bonds form part of the company’s P12-billion debt securities program shelf registration.

The offer includes two series of peso-denominated fixed-rate bonds. The four-year Series D bonds were due in 2030 and carry an annual interest rate of 6.508 percent. The seven-year Series E bonds were due in 2033 and tagged at 7.628 percent.

Both bond series were officially listed on PDEx on Feb. 20, enabling investors to trade the securities in the secondary market.

“The strong demand for our retail bonds reflects investor confidence in our long-term strategy and in our ability to execute consistently, even amid shifting market dynamics,” said Marco Antonio, president and CEO of CPG.

Proceeds from the bond issuance will support the company’s expansion initiatives, including projects under its affordable housing arm, Phirst Park Homes, Inc.

The latter plans to launch up to nine developments this year with a combined sales value of P30 billion.

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Meanwhile, subsidiary Century Limitless Corp. recently completed the third condominium tower of its Azure North project in Pampanga. It is preparing to launch within this quarter a P10-billion project in General Trias, Cavite.

Retail bonds are typically issued to raise funds for corporate requirements, such as project development, debt refinancing or general corporate purposes, while giving investors fixed returns over a defined period.

The latest issuance forms part of CPG’s broader capital-raising strategy, allowing it to tap the debt market in tranches depending on funding needs and market conditions.

China Bank Capital Corp. served as sole issue manager for the transaction and, together with PNB Capital and Investment Corp., acted as joint lead underwriters and bookrunners. Land Bank of the Philippines participated as a selling agent.