Century Properties sets rates for P3-B bond offer

MANILA, Philippines - Real estate firm Century Properties Group Inc. has finalized interest rates for its P3-billion maiden bond offering, proceeds of which will be used to fund the construction of numerous residential towers in its masterplanned developments.

In a disclosure to the Philippine Stock Exchange, the property arm of the Antonio family has fixed the yield for the three-year, five-year, and seven-year bonds at six to  6.9758 percent per annum.

Century Properties is offering P2-billion unsecured fixed-rate peso retail bonds, with an oversubscription option of P1 billion.

The three-year bonds, with a fixed rate of six percent per annum, is due in 2017 while the five-year bonds carry an interest rate of 6.6878 percent per year and is due in 2020.

The seven-year bonds will have a fixed yield of 6.9758 percent per annum due in 2021.

The bonds will be listed at the Philippine Dealing and Exchange Corp. on Sept. 2.

BDO Capital & Investment Corp. is the issue manager for the transaction, while BDO Capital & Investment Corp. and The Hongkong and Shanghai Banking Corp. Ltd. are joint lead underwriters and bookrunners.

Century Properties said the bonds have been rated AA+ with a stable outlook by the Credit Rating and Investor Services Philippines Inc. The rating reflects a very strong capacity to repay debt obligations.

The listed real estate firm is spending more than P12 billion in the next five years for several residential buildings in Metro Manila.

The company plans to complete the construction of 31 buildings covering roughly 1.67 million square meters in the next five years to cater to strong demand in the property sector.

By 2019, the firm expects to complete four more commercial buildings totaling 100,000 square meters, including the world’s first Forbes–branded commercial building in Makati City.