CENTURY Properties Group, Inc. (CPG) said on Monday that it had fully redeemed its preferred shares at P100 per share for a total of P3 billion.
In a media release, the company said its board of directors had approved the optional redemption of its cumulative, nonvoting, non-convertible, nonparticipating, redeemable peso-denominated preferred shares.
“The full redemption of the preferred shares is part of our strategic program that is anchored on prudent financial management and debt reduction with the goal of strengthening our balance sheet to support our growth expansion,” said CPG Chief Financial Officer Ponciano S. Carreon said.
“We continue to see an active and liquid domestic capital markets and we intend to tap the same if needed for our capital funding purposes,” Mr. Carreon added.
The preferred shares were originally listed on the Philippine Stock Exchange on Jan. 10, 2020.
The company earlier said in its prospectus that it would offer about 20 million preferred shares with an oversubscription option of 10 million preferred shares par valued at P0.53 per share.
The shares were offered at P100 apiece with a dividend rate of 6.7177% per annum with a tenor of 3.5 years.
The company said that it might redeem the preferred shares on the sixth month of the third anniversary of the listing date or on any dividend payment date in whole at a redemption price equal to its original offer price.
It said that net proceeds from the offering would be infused as equity or on loan to the company’s operating subsidiaries.
The subsidiaries would disburse the net proceeds as capital expenditures of Century City Development Corp.’s office development in Century City, which has a lot area of 2,000 square meters (sq.m.) and gross floor area of 40,000 sq.m.
Net proceeds would also be disbursed as working capital requirements for Century Limitless Corp.’s leasing project in Katipunan, Quezon City and in Mandaluyong City.
CPG has six subsidiaries, namely: Century Communities Corp., Century City Development Corp., Century Limitless Corp., Century Properties Management, Inc., Century Destinations and Lifestyle Corp., and PHirst Park Homes, Inc. — Adrian H. Halili