PHILIPPINES – Listed property giant Megaworld Corporation (PSE:MEG) is set to file with the Securities and Exchange Commission a registration statement for the shelf registration of up to P30-billion worth of Peso-denominated bonds.
Here are the fast facts on Megaworld’s P30-B bond shelf registration:
- The first trance of the proposed bond issuance amounts to P8 billion
In a disclosure to the Philippine Stock Exchange (PSE), Megaworld said the first tranche of the proposed bond issuance amounts to P8-billion with an oversubscription option of up to P4-billion.
Proceeds from the bond issuance will primarily fuel the company’s bullish expansion of its rental portfolio, particularly office and malls in its various township developments across the country.
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“Megaworld’s direction is towards building a strong recurring income portfolio. This can be best supported through a bond issuance given the healthy interest rates in the country and our capacity to service the obligation,“ says Francis Canuto, treasurer, Megaworld.
2. Proposed issuance gets PRS Aaa rating
The proposed issuance was assigned a rating of PRS Aaa by the Philippine Rating Services Corporation (PhilRatings.) The outlook given by the rating agency is Stable, which means that the assigned rating is likely to remain unchanged in the next 12 months.
The PRS Aaa is the highest possible rating given by PhilRatings, and is one that is associated with minimal credit risk.
“Obligations rated PRS Aaa are of the highest quality. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong having ample liquidity, sound capitalization, and high-quality management. We also expect Megaworld to significantly benefit from the continued positive performance of the country’s economic drivers,” Philippine Rating Services Corporation stated.
Megaworld is also a major developer of office, residential and commercial buildings in Makati, particularly in the Central Business District (CBD), with around 27 buildings to date. – BusinessNewsAsia.com