Office and condominium builder Megaworld Corp. successfully raised P12 billion from the issuance of seven-year bonds amid strong demand from institutional and retail investors.
Banking sources said Megaworld’s bond offering was warmly received by investors who welcomed the property firm’s return to the bond market after several years of absence.
Sources said institutional investors took up as much as 60 percent of the P12-billion bond offering while retail investors accounted for the remaining 40 percent.
Megaworld’s return to the bond market was oversubscribed despite the presence of similar big offerings in the market this month.
Among these fund raising activities were the P7-billion initial public offering of Wilcon Depot, the P15-billion five-year bond offering of San Miguel Corp., the P30-billion three-year retail treasury bonds of Bureau of Treasury and the P7-billion 10-year bond offering Ayala Land Inc.
Megaworld offered to sell P8 billion with an oversubscription option of P4 billion at a coupon rate of 5.3535 per annum. Offer period took place on March 15 to March 21.
The bonds will be listed with the Philippine Dealing and Exchange Corp on March 28.
BDO Capital and Investments Corp. was the issue manager and lead underwriter for the offering while China Bank Capital was a participating underwriter.
Megaworld’s P12-billion bond offering was a part of the company’s P30-billion bond shelf registration approved by the Securities and Exchange Commission last week.
The property firm controlled by tycoon Andrew Tan said it would use the proceeds to finance projects within Iloilo Business Park, McKinley Hill, McKinley West and Uptown Bonifacio.
Megaworld group is spending P60 billion in 2017 to accelerate development of projects within township projects and for land acquisitions.
It plans to launch 20 residential projects, seven office new buildings and six lifestyle malls this year.
