PROPERTY giant Megaworld Corporation said on Thursday it will issue P30 billion worth of bonds under the Securities and Exchange Commission’s (SEC) shelf registration program to raise funds for its capital expenditures.
Megaworld told the Philippine Stock Exchange that its board of directors has approved the P30-billion debt securities program. It said the initial tranche will consist of fixed-rate bonds of up to P8 billion, with an oversubscription option of up to P4 billion.
Megaworld management will determine the pricing, terms and conditions, and other features of the bonds, the proceeds of which will be used to fund the company’s capital expenditures.
“A subsequent disclosure to the Securities and Exchange Commission and the Philippine Dealing and Exchange Corporation shall be done as soon as the Board of Directors approves the final size, pricing and terms and conditions of the Bonds,” the company said.
BDO Capital & Investment Corporation was appointed issue manager, lead underwriter and bookrunner for the bond program.
Megaworld set a capital expenditure budget of P55 billion for 2016, with allocations for its subsidiary brands Global Estate Resorts Inc.(GERI), Empire East Land Holdings Inc., and Suntrust Properties Inc.
The company has not yet disclosed its capex budget for this year.
In the first nine months of 2016, Megaworld’s net income rose 11 percent from a year earlier to P9.27 billion, driven by a 15 percent increase in rental income to P7.41 billion as the company expanded its office and commercial retail portfolio.