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Megaworld bonds upsized to P12B

Property developer Megaworld Corp. has upsized its fixed rate bonds issue to P12 billion from the initial offer size of P8 billion on strong demand from investors.

The Series B fixed rate bonds priced at 5.3535 percent per annum due 2024 were oversubscribed 2.2 times due to strong demand from individuals in the retail market to banks, investment funds, pension funds, insurance companies and other corporates.

The lead underwriter and sole bookrunner of the bonds fully exercised the issue’s P4 billion over-subscription option when the offer period ended last March 21.

The property developer on Tuesday listed its P12-billion seven-year bonds at the Philippine Dealing and Exchange Corp., its second foray into the local organized debt market following its maiden issue of P5 billion in 2009.

This represented the initial tranche from its P30-billion shelf registration of debt securities with the Securities and Exchange Commission.
   
The company will use the proceeds from the bond offering to primarily finance its capital expenditures in relation to its investment properties.
   
Megaworld has a lineup of 22 townships and integrated lifestyle communities spread across Luzon, Visayas and Mindanao.
   
Its Series B bonds are rated ‘PRS Aaa’ by the Philippine Rating Services Corp., the highest rating assigned by the company. The rating denotes that such obligations are 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.

listed to PHP689.42 billion issued by 44 companies composed of 119 securities.