SEC clears Century Properties’ bond sale

Century Properties Group, Inc. (CPG) has taken another step forward in its planned fund-raising program after securing the Securities and Exchange Commission’s (SEC) official clearance for its first tranche bond offering.

In a disclosure on Thursday, the Antonio family-led property developer said it received on Feb. 5 the order of registration and certificate of permit to offer securities for sale from the SEC. This covers CPG’s initial issuance under its shelf registration of fixed-rate retail bonds.

The first tranche consists of an offer worth P3 billion, with an oversubscription option of up to P2 billion.

This offering is made up of two series of fixed-rate retail bonds: the 6.508-percent-a-year four-year Series D bonds due in 2030 and the 7.628-percent-a-year seven-year Series E bonds due in 2033.

These securities will be listed and traded through the Philippine Dealing & Exchange Corp., providing investors with access to the bonds in the secondary market.

The SEC permit marks a key milestone for Century Properties as it moves closer to tapping the domestic debt market for fresh capital. The company said this will support funding needs for its residential development projects.

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Earlier, the regulator had rendered effective CPG’s registration statement for its planned P12-billion shelf registration of fixed-rate bonds.

This allows the company to raise funds in multiple tranches over a five-year period, subject to compliance with remaining requirements.

Century Properties’ bond program is expected to provide the firm with added flexibility in strengthening its funding base as it continues to expand its portfolio of residential, office and mixed-use developments.