Megaworld to raise P30B via debt securities program

January 20, 2017

Megaworld to raise P30B via debt securities program

MEGAWORLD Corp. is returning to the bond market to raise P30 billion within the next three years, with the initial issuance amounting to P12 billion targeted before the semester ends.

In a disclosure to the Philippine Stock Exchange on Thursday, the integrated urban township developer unveiled the P30-billion debt securities program aimed at financing its capital expenditures.

Megaworld targets to initially issue P8 billion worth of fixed-rate retail bonds within the first half of the year, Public Relations and Communications Head Harold C. Geronimo said in a text message.

For the first tranche of the shelf offering, the listed company earmarked another P4 billion worth of debt papers for overallotment. The management has yet to finalize the pricing and other terms of the bond issue.

Megaworld mandated BDO Capital & Investment Corp. as issue manager, lead underwriter and bookrunner for the fund-raising activity.

In a statement issued separately on Thursday, Philippine Rating Services Corp. (PhilRatings) said it has assigned a “PRS Aaa” rating with a “stable” outlook on the initial tranche of the proposed shelf offering.

The local debt watcher awards a “PRS Aaa” rating to obligations exhibiting the highest quality and minimal credit risk. It also reflects the “extremely strong” capacity of the borrower to meet its financial commitment.

A stable outlook, meanwhile, indicates the unlikelihood of a downgrade or upgrade of the issue credit rating within the next 12 months.

“The assigned issue credit rating takes into account Megaworld’s ample liquidity, the company’s sound capitalization and high-quality management, as well as expectations that Megaworld’s growth strategy will significantly benefit from the continued positive performance of the country’s economic growth drivers,” PhilRatings said.

Megaworld is known for developing townships, a mix of office buildings, commercial and retail spaces, residences and institutions. It also develops integrated tourism estates through subsidiary Global-Estate Resorts, Inc.

The company is mainly expanding its office, retail and hotel portfolio within its mixed-use developments to strengthen its recurring income stream.

“Megaworld’s aggressive expansion of its township developments is seen to significantly benefit from the continued positive performance of the country’s economic growth drivers,” PhilRatings noted.

“Cash from operations is expected to remain positive during the projected period 2016-2024, with funding for working capital and capital expenditures largely sourced from internally generated cash flows,” PhilRatings said.

Shares in Megaworld closed eight centavos or 2.22% higher at P3.69 apiece on Thursday. — Keith Richard D. Mariano / Business World

Search our properties

Completion Type:


Unit Type:



Be among the first to witness the battle between Thor and Hulk at #UptownCinemas this October 24! Get your tickets now at
Make Gelare your new Tuesday habit with Half Priced Waffles! Visit them at Uptown Mall to know more! #UptownBonifacioExclusives #MegaworldFort
There's something new in the Newtown!
SHOPWISE EXPRESS is opening soon this year at the ground level of 8 Newtown Boulevard. Residents of the Mactan Newtown can do their grocery shopping in a breeze.
Visit our township to know more about our residential projects and see new developments.
Khaleb Shawarma is now open at #VeniceGrandCanal #MegaworldFort
Witness how far a father would go for his child at #UptownCinemas and feel the action-packed experience. Get your tickets now at #megaworldfort