Saturday, 31 October 2009 00:00 [ manilatimes.net ]
THE Securities and Exchange Commission (SEC) approved the planned bond sale of JG Summit Holdings Inc. and Megaworld Corp. to bankroll expansions. Documents from the regulator showed that it has given the greenlight to the fund raising activities of the Gokongwei group and the Andrew Tan-led property firm, which would sell up to P10 billion and P5 billion, respectively, worth of fixed-rate bonds.
According to JG Summit, the proceeds of their bond sale will finance the expansion of its airline and telecommunication businesses, while Megaworld will use the fresh funds to partially finance the capital expenditure for the proposed central district development in Fort Bonifacio and for general corporate purposes.
The JG Summit’s bonds, which will be issued on or before November 14, are due 2014, while Megaworld’s debt papers will mature after five years and six months.
ING Bank N.V., Manila branch and SB Capital Investment Corp. will act as joint lead issued managers for JG Summit’s bond sale while the joint lead managers and underwriters for Megaworld’s issuance are BDO Capital and Investment Corp., BPI Capital Corp., China Banking Corp., First Metro Investment Corp., the Hongkong and Shanghai Banking Corp. Ltd., ING, RCBC Capital Corp. and SB Capital.
This year, the holding firm of Cebu Pacific, Robinsons Land Corp. and URC is embarking on a P28-billion capital expenditure program for the expansion of its four core businesses, like property, food, telecommunications and airlines.
Credit Rating and Investors Service Philippines Inc. (CRISP) has assigned an “AAA” rating—the highest rating—on Megaworld’s proposed bond issuance, reflecting “strongest capacity to repay debt obligations.”
Last month, the government awarded the Fort Bonifacio project after the real estate firm offered P3.15 billion or P37,603.69 per square meter for the 8.38-hectare government property in Taguig City.
Under the proposal, the Bases Conversion Development Authority shall be entitled to an upfront cash payment of P1.062 billion and annual revenues of P306.6 million for 12 years.
Chino S. Leyco
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