Posted on March 10, 2017 [ bworldonline.com ]
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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