Office and condominium builder Megaworld Corp. has set the interest rate for the planned P12-billion seven-year bond offering at 5.3535 per annum.
Documents filed by Megaworld with the Securities and Exchange Commission showed that the offering period for the company’s maiden fixed rate bond is set 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 is the issue manager and lead underwriter of the offering, with China Bank Capital as participating underwriter.
Megaworld’s P12-billion bond offering forms part of the company’s P30-billion bond shelf registration approved by the SEC last week.
The property company owned by tycoon Andrew Tan said it would use the proceeds to finance projects within the Iloilo Business Park, McKinley Hill, McKinley West and Uptown Bonifacio.
Megaworld said it would spend P1.16 billion over the next three years in Iloilo Business Park, P2.14 billion in McKinley Hill, P2.4 billion in McKinley West and P7.2 billion in Uptown Bonifacio.
The Megaworld group will spend P60 billion in capital expenditures this year, higher than P55 billion spent in 2016.
The company plans to spend as much a 80 percent of the programmed spending to bankroll the construction of new residential condominiums, office towers, commercial centers and hotels within its townships. The balance will be used for land acquisition and investment properties.
Megaworld said it planned to speed up most of its developments in existing townships, particularly in McKinley West, Uptown Bonifacio, Davao Park District, Iloilo Business Park, Boracay Newcoast, Twin Lakes and Alabang West.
The group also plans to launch 20 residential projects this year with a total sales value of P31.2 billion.