By Neil
Jerome C. Morales (The Philippine Star) | Updated April 11, 2013 - 12:00am
MANILA,
Philippines - Property giant Megaworld Corp. plans to raise fresh capital to
back up its P35-billion spending program this year.
“Megaworld
proposes to issue 10-year US dollar-denominated fixed-rate notes which will
mature in 2023,” the firm told the local stock exchange.
“Proceeds of
the issue will be used by the company for general corporate purposes,” it
added.
Early this
year, the property arm of conglomerate Alliance Global Group Inc. committed to
spend a record P35 billion for its property projects this year amid the
property boom, up from P25 billion in 2012.
The Andrew
Tan-led property group, which recorded P63.5 billion in residential reservation
sales last year, will launch at least 10 new projects in the first half alone.
Megaworld
said the corporate notes will be listed in the Singapore Exchange Securities
Trading Ltd. (SGX-ST).
In April last
year, Megaworld raised $200 million from the issuance of seven-year, dollar-denominated
notes that were used to pay debts and fund operations. The bonds were listed in
the SGX-ST.
The Megaworld
group is composed of three brands: Megaworld, medium-cost housing arm Empire
East Land Holdings Inc. and affordable housing unit Suntrust Properties Inc.
Like other
real estate companies, the listed firm is benefiting from low interest rates
that spur home loans, increasing income of the middle class, high demand amid a
backlog and growth in the office segment driven by the outsourcing industry.
In more than
20 years of operations, the group has completed more than 240 residential and
office buildings with a total floor area of around six million square meters.
Megaworld,
which pioneered the “live-work-play-learn” concept, has developed township and
business park projects like the Eastwood City, Forbestown Center, McKinley Hill
and Newport City.
Megaworld’s
profit climbed 21 percent to P7.3 billion as the property group recorded more
than P63 billion in reservation sales involving 12,000 residential units.
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