Megaworld raises $200 M from sale of US dollar notes
Megaworld Corporation, the country’s top urban developer, has raised $200 million overseas from the issuance of US dollardenominated securities.
In a disclosure to the Philippine Stock Exchange, Megaworld said it the offering, capped at $200 million, consists of senior, unsecured notes with a call optionon April 2023.
The notes will be listed at the Singapore Exchange Securities Trading Limited (SGX-ST). Megaworld has tapped J.P. MORGAN as the Sole Bookrunner to arrange a series of fixed income investor meetings in Singapore and Hong Kong prior to the issuance.
Megaworld said proceeds from the issuance will be used to refinance existing indebtedness and fund general corporate purposes.
The firm is allocating R60 billion for capital spending this year, with 80 percent covering development projects, mostly residential, office and commercial developments in various townships across the country.
The remaining 20 percent will be set aside for land acquisition and other investment properties.
“The Megaworld Group is now present in more than 30 cities around the country. We will continue to be aggressive in developing more townships and integrated lifestyle communities across the country, most especially in the provinces,” said Megaworld Senior Vice President and Treasurer Francis Canuto.
Megaworld Corporation grew its net income by 13.4 percent to R13.3 billion in 2017 from R 11.7 billion in the previous year.
The firm said 2017 earnings included non-recurring gains of R113 million while 2016 figures included a non-recurring gain of R82 million.
Attributable net income ended at R12.8 billion in 2017, a 12.7 percent jump from the R11.3 billion posted in 2016.
Megaworld said the healthy growth was underpinned by the strong performances of its key businesses in residential and hotel developments, office as well as commercial space leasing in malls and shopping centers. (JAL)