Makati—(PHStocks)—Century Properties Group Inc. (PSE: CPG) has closed a dual-currency secured term loan facility of up to PhP4.2 billion. The 5-year Facility was lead by lead arranger and book runner Standard Chartered Bank.
The proceeds from the transaction will be used to meet the construction costs, land cost, general expenditure and financing costs exclusive to seven (7) buildings located across three project developments of CPG. The facility was targeted to both domestic and international banks and received commitments both in US dollar and Philippine peso.
“This secured term loan facility accomplishes few milestones for CPG. First, it lowers CPG’s cost of debt as the Facility’s rate of 3 month PDST +4%, or the BSP Overnight Rate +2%, whichever is higher, significantly brings down CPG’s financing costs. Second, the Facility secures the working capital needs of seven pre-sold projects that are targeted to be turned over between 2015 to 2017. In addition, it provides CPG financial flexibility by allowing profits from completed and soon to be completed projects, as well as funds raised from CPG’s recent equity placement, to embark on growth opportunities to enhance shareholder value,” said Jose Carlo R. Antonio, CFO, CPG.
Primeiro Partners was the financial advisor to CPG.