Megaworld says fixed-rate bonds are oversubscribed

March 28, 2017


Megaworld Corporation Logo - Megaworld Fort

Property developer Megaworld Corp. on Tuesday said its fixed-rate bond issuance garnered significant interest from investors, compelling the company and its lead underwriter to exercise the oversubscription option.

Megaworld told the Philippine Stock Exchange that the P12-billion Series B fixed-rate bonds were oversubscribed by 2.2 times.

The oversubscription reflected “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,” the company said.

“The lead underwriter and sole bookrunner of the Series B bonds, in consultation with the issuer, fully-exercised the issue’s P4-billion oversubscription option when the offer period ended on March 21, 2017,” it noted.

Thus, the volume was up from the initial offer size of P8 billion, according to Megaworld.

The bonds, issued on Tuesday and falling due in 2024, were priced at 5.3535 percent a year.

“Megaworld’s Series B bonds signals the issuer’s return to the local debt capital markets after it issued 5-year fixed rate bonds in 2009 and represents the initial tranche from its P30 billion shelf registration of debt securities with the Securities and Exchange Commission,” the company said.

Proceeds from the issue will be used primarily to fund capital expenditures in relation to investment properties.

The bonds are rated ‘PRS Aaa’ by the Philippine Rating Services Corp., the highest rating assigned by the debt watcher, denoting the obligation is of the highest quality with minimal credit risk and that the issuer’s capacity to meet its financial commitment on the obligations is extremely strong.

BDO Capital & Investment Corp. acted as issue manager, lead underwriter and sole bookrunner for the transaction, and China Bank Capital Corp. participated as underwriter. — Ted Cordero/VDS, GMA News

Source: GMA Network

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