Megaworld bonds sale starts today
Posted on November 5th, 2009
Starting today, Friday, property developer Megaworld Corp. will begin with the offering of five-year retail bonds carrying a coupon rate of 8.46% per annum. The Megaworld, in its disclosure to the Philippines Stock Exchange (PSE) said, it signed an agreement with joint lead managers and book runners BDO Capital & Investment Corp., and HSBC Ltd. which finalized the terms of conditions of the bonds which will be due on May 18, 2015, with the total principal amount of the fixed-rate bond reaching P5 billion.
The offering was approved by the SEC and will start today, until November 11 or Wednesday of next week.
The proposed bond issuance has been given an “AAA” rating by the local credit watchdog Credit Ratings and Investors Services Philippines Inc. (CRISP). The said grade is the highest rating given by CRISP and it reflects the issuing company’s very strong capacity to repay its obligations.
Megaworld has decided to make the bond offering to raise funds it can use for the development of its new 8.38-hectare mixed-use investment project in North Bonifacio Taguig. The company has made commitment to invest at least P15.6 billion in the next 20 years for the development of the North Bonifacio property.
The project is located in the northern district of Fort Bonifacio and extending all the way to Kalayaan Avenue. It is near the school where the British, Japanese and American international schools and various local schools are located.
Megaworld was awarded recently the right to develop the prime property under a joint-venture partnership with the state-owned Bases Conversion Development Authority or BCDA. The company will pay BCDA upfront a cash amount of P1.06 billion plus P306.62 million in annual revenues for the next 12 years.
