Century Properties takes step closer to P12-B bond sale
The Securities and Exchange Commission (SEC) has given initial clearance to Century Properties Group, Inc.’s (CPG) planned P12-billion shelf registration of debt securities. This paves the way for a bond issuance aimed at strengthening the property developer’s funding base.
In a disclosure on Friday, CPG said it received the SEC’s pre-effective letter on Jan. 16. The regulator favorably considered its application to register up to P12 billion worth of debt securities.
The program will allow the company to raise funds in tranches over time, subject to regulatory requirements.
The first tranche will consist of fixed-rate bonds with a base offer of up to P3 billion. There is an oversubscription option of up to P2 billion.
The bonds will be offered at 100 percent of face value and are intended to be listed and traded on the Philippine Dealing & Exchange Corp., CPG said.
The issuance, however, is not yet final.
CPG said the shelf registration will be declared effective only after the SEC issues an order of registration and permit to sell securities. This is subject to the company’s submission of the final prospectus and transaction agreements, as well as compliance with other conditions that the regulator may impose.
Once completed, the shelf registration will give CPG flexibility to tap the debt market when conditions are favorable. That is, without the need to seek separate approvals for each drawdown.
Large firms commonly use shelf registrations to streamline capital-raising activities while maintaining regulatory oversight.
CPG is one of the country’s listed property developers, with projects spanning residential, office and mixed-use developments.
