CPG to raise P3B in bond issue

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    Fund reallocation. Century Properties acquired the 40 percent stake of Mitsubishi Corporation in Century Diamond Tower in Makati City.

    Century Properties Group Inc. is looking to raise P3 billion through a bond issuance.

    The company is offering an initial P2 billion and another P1 billion covering the oversubscription option for bonds that will be due 2024, three years from now.

    The Securities and Exchange Commission (SEC) said it has approved the fund raising “subject to certain remaining requirements.”

    The proceeds will be used to refinance maturing debt, fund capital expenditures for ongoing projects as well as general corporate requirements.

    The bonds will be offered at face value, and will be listed and traded on the Philippine Dealing & Exchange Corp.

    China Bank Capital Corp. will serve as the sole issue manager, sole lead underwriter, and sole bookrunner for the offer.

    In December, Century Properties said it is realigning P500 million of its P2.96 billion preferred share sale in December last year  to working capital, following its acquisition of a partner’s stake in a project.

    Century Properties said the amount will be deducted from the P1.8 billion allocation that should have gone for the construction of an 28,800 square meter (sq.m.) office building in Century City Makati.

    “The reallocated funds will be part of Century Properties’ general working capital funds 30-days after the board approval today,” the company said.

    “The reallocation is pursuant to Century Properties’ purchase of the 40 percent stake of Mitsubishi Corp. in Century Diamond Tower which was partially funded by its working capital funds,” it added.