LISTED Megaworld Corp. announced on Thursday that its P12-billion fixed bonds have kept the “PRS Aaa” rating granted to it by the Philippine Rating Services Corp. (PhilRatings).
In a disclosure on Thursday, the Andrew Tan-led property developer said the ratings agency maintained that rating — the highest it could bestow — because of its “robust liquidity, sound capitalization and strong management, as well as favorable industry outlook.”
The rating, it added, shows the firm’s “capacity to meet its financial commitment on the obligation is extremely strong.”
The rating comes with a stable outlook, which means that rating is likely to stay in the next 12 months.
Issued in 2017, Megaworld’s Series B bonds carry a 5.3535-percent annual interest rate and are set to mature in 2024.
The real estate titan initially offered P8 billion of these bonds, but “strong demand” allowed it to exercise the issuance’s P4-billion oversubscription option.
“[D]ue 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, it fully exercised the issue’s…oversubscription option,” it said in the disclosure.
Megaworld saw its consolidated net income surge by 18 percent to P8.9 billion in the first half of 2019 from P7.5 billion in the same period last year on the back of its robust core business performance.
Net income attributable to the parent firm reached P8.3 billion in the January-to-June period, up 16 percent from P7.2 billion a year ago.
In August, Megaworld and seven other companies were named among the top firms in the Asia-Pacific region in Forbes’ “Asia’s 200 Best Over a Billion.”
Megaworld shares grew by 3.19 percent or 16 centavos to end at P5.18 apiece on Thursday.