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SEC approves shelf offerings of Megaworld, STI

Posted on March 10, 2017 [ ]

THE Securities and Exchange Commission (SEC) has approved the shelf offering of Megaworld Corp. and STI Education Services Group, Inc. in the bond market.

In its en banc meeting on Thursday, the corporate regulator approved the registration of the listed property developer of fixed-rate bonds and commercial papers cumulatively worth P30 billion for issuance in three years.

Megaworld will initially issue Series B bonds due 2024 amounting to P8 billion and P4 billion more, in case of oversubscription. Philippine Rating Services Corp. (PhilRatings) assigned its highest rating of “PRS Aaa” to the debt papers.

The company intends to launch the first tranche of the debt securities program within the month, Public Relations and Communications Head Harold C. Geronimo said in a mobile phone message.

Megaworld looks to net P11.88 billion from the maximum offer. It intends to disburse the proceeds within three years to bankroll four ongoing developments in the cities of Iloilo and Taguig: Iloilo Business Park, McKinley Hill, McKinley West and Uptown Bonifacio.

The company is known for developing townships with office buildings, commercial and retail spaces, residences and institutions. It also develops integrated tourism estates through subsidiary Global-Estate Resorts, Inc.

Megaworld is mainly expanding its portfolio of leasable properties to ensure a steady income stream. By 2020, the company expects to have grown its rental income to P20 billion with the completion of nearly 1 million square meters of new offices, lifestyle malls and commercial spaces across 22 townships.

Aside from the shelf registration of Megaworld, the corporate regulator allowed the subsidiary of listed STI Education Systems Holdings, Inc. to offer P5 billion worth of fixed-rate bonds within the next three years.

STI Education Services will initially issue Series 7Y bonds due 2024 and Series 10Y bonds due 2027 with a cumulative face value of P3 billion. PhilRatings has assigned a “PRS Aa” rating on the debt securities.

The company known as STI College earmarked the proceeds of the entire debt securities program for the expansion of its campuses and other general corporate purposes, according to the latest prospectus submitted to the SEC on March 3.


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