Megaworld bonds oversubscribed, R12 billion sold

Urban developer Megaworld Corporation issued a total of R12 billion worth of Series B fixed rate bonds priced at 5.3535 percent p.a. due 2024, up from the initial offer size of only R8 billion.

In a disclosure to the Philippine Stock Exchange, the firm said the issue was oversubscribed 2.2 times due to strong demand from a wide spectrum of investors ranging from individuals in the retail market to banks, investment funds, pension funds, insurance companies and other corporates.

Thus, the lead underwriter and sole bookrunner of the Series B bonds, in consultation with the issuer, fully exercised the R4 billion oversubscription option when the offer period ended on March 21, 2017.

BDO Capital & Investment Corporation acted as issue manager, lead underwriter and sole bookrunner for the Series B bonds. China Bank Capital Corporation participated as an underwriter for the bond issue. Megaworld’s Series B bonds signals the issuer’s return to the local debt capital markets after it issued 5-year fixed rate bonds in 2009 and represents the initial tranche from its R30billion shelf registration of debt securities with the Securities and Exchange Commission.

Proceeds from the bonds are intended to primarily finance the issuer’s capital expenditures in relation to its investment properties.

The Series B bonds are rated ‘PRS Aaa’ by the Philippine Rating Services Corporation (PhilRatings), the highest rating assigned by PhilRatings. The rating denotes that such obligations are of the highest quality with minimal credit risk, and that the issuer’s capacity to meet its financial commitment on the obligations is extremely strong.

Megaworld Corporation is the country’s largest developer of integrated urban townships and the biggest developer and lessor of office spaces.