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Megaworld lists P12-billion debt in PDEx

In Photo: Megaworld Corp. lists P12 billion worth of Series B fixed-rate bonds at 5.3535 percent per annum due 2024, up from the initial offer size of only P8 billion. Present during the listing ceremony are ( from left) Chinabank Capital Corp. Managing Director Vergilio Chua, BDO Unionbank Senior Executive Vice President Walter Wassmer, BDO Capital President Eduardo Francisco, Megaworld Corp. Business Development and Leasing Senior Vice President Jericho Go, Megaworld Corp. Commercial Division Senior Vice President Kevin L. Tan, Megaworld Corp. COO Lourdes T. Gutierrez-Alfonso, Megaworld Corp. Executive Director Kingson U. Sian, Megaworld Corp. Senior Vice President Treasurer Francisco Canuto, PDS Group President and CEO Cesar Crisol and PDE x President and COO Antonio Nakpil. Story on B1.

PROPERTY developer Megaworld Corp. on Tuesday listed its P12-billion Series B fixed-rate bonds at the Philippine Dealing and Exchange Corp. (PDEx).

The seven-year fixed-rate Series B bonds due 2024 is a larger issue and longer tenor than its maiden issue of P5-billion, five-year bonds eight years ago.

The paper was priced at 5.3535 percent per year.

The bond was oversubscribed 2.2 times due to a strong demand from a wide spectrum of investors, ranging from individuals in the retail market to banks, investment funds, pension funds, insurance companies and other corporates.

Megaworld Senior Vice President for Commercial Division Kevin Tan and Megaworld COO Lourdes Gutierrez-Alfonso led the ringing of the ceremonial bell to herald the start of trading of the newly listed  bonds.

The debt-paper issuance is the initial tranche from its P30-billion shelf registration of debt securities with the Securities and Exchange Commission.  Proceeds from the bonds are intended to primarily finance the issuer’s capital expenditures in relation to its investment properties.

BDO Capital and Investment Corp. acted as issue manager, lead underwriter and sole bookrunner for the bonds.  China Bank Capital Corp. is the underwriter for the bond issue.

Megaworld, the property development arm of businessman Andrew Tan, earlier said it is increasing its capital expenditures this year by about 9 percent to P60 billion, from last year’s P55-billion budget.

The company—known for its mixed-use developments mainly for the business-process outsourcing sector—said 80 percent of the capital spending for the year, or about P48 billion, will be used for accelerating and expanding projects in various townships across the country.

The remaining 20 percent, or P12 billion, will be used for land acquisition and investment
properties.

Image credits: Alysa Salen

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