CENTURY PROPERTIES Group, Inc. is planning a P3-billion fixed-rate retail bond offering, proceeds of which will be used to partially refinance debt as well as fund capital expenditures and general corporate requirements, subject to regulatory approval.
In an e-mail to reporters on Wednesday, the Securities and Exchange Commission (SEC) said it received the registration statement of the company on Dec. 20.
It will be part of Century Properties’ P6-billion debt securities program the company also filed with the commission for shelf registration. The other tranches of the debt securities program may be issued within three years.
Meanwhile, the initial tranche comprises P2 billion worth of five-year fixed-rate retail bonds due in 2027, along with an oversubscription option of up to P1 billion.
Century plans to list the bonds at the Philippine Dealing & Exchange Corp. by next year after securing regulatory approvals.
According to its preliminary prospectus dated Dec. 17, the company plans to use P1 billion of net proceeds to partially refinance debt, P959 million to fund capital expenditures for horizontal affordable housing developments, and P985 million to fund general corporate requirements.
The company mandated China Bank Capital Corp. as the sole issue manager, lead underwriter, and bookrunner for the transaction.
On Wednesday, Century Properties’ shares at the stock market closed inched up 1.27% or 0.005 centavos to close at 40 centavos apiece. — Keren Concepcion G. Valmonte