Friday, October 30, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
CORPORATE REGULATORS have approved the plan of listed property firm Megaworld Corp. to sell up to P5 billion worth of bonds to partially fund the development of its latest project, the North Bonifacio in Taguig.
The Andrew L. Tan-led Megaworld registered P3 billion worth of bonds, with an oversubscription for P2 billion more, documents from the Securities and Exchange Commission (SEC) showed.
The firm said it expects to net P2.966 billion on sale of P3 billion worth of bonds. Proceeds could go up to P4.95 billion if the offer is fully taken up.
Megaworld said the proceeds would be used to partially fund the development of its North Bonifacio project until 2010, where it has committed to spend up to P20 billion over 20 years.
Last month, state-led Bases Conversion and Development Authority picked Megaworld as the developer of 8.38-hectare lot in Fort Bonifacio. The firm offered an upfront payment of P3.1511 billion, topping Robinsons Land Corp.’s P3.1507-billion offer.
The bonds will have a term of five years and six months, and will pay up to 250 basis points higher than the Philippine Dealing System fixing yield five-year average for the offer period tentatively set today.
Investors may buy a minimum of P50,000 worth of bonds, and in multiples of P10,000 thereafter. Megaworld picked BDO Capital and Investment Corp. and the Hongkong Shanghai Banking Corp. Ltd. as joint lead managers and bookrunners for the offering.
Megaworld said the bonds have received the highest grade of “AAA” from the Credit Rating and Investors Service Philippines, Inc.
As of the first half, Megaworld’s combined interest bearing loans and bonds payable stood at P11.84 billion, while cash and cash equivalents were at P15.73 billion, documents showed.
Megaworld shares went down by P0.06 to P1.52 apiece yesterday. -- Don Gil K. Carreon
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