Condominium builder Megaworld Corp. has set the rate for its planned P5-billion fixed rate bonds at 8.46 percent a year.
Megaworld said in a disclosure to the stock exchange that it signed an agreement with BDO Capital and Investment Corp. and the Hong Kong and Shanghai Banking Corp. Ltd. finalizing the terms and conditions of the company’s fixed rate bonds due on May 18, 2015.
BDO Capital and HSBC are the joint lead managers underwriters and book runners of the issue.
The Securities and Exchange Commission last week approved Megaworld’s P5-billion bond offering to partially finance the proposed central district development in Fort Bonifacio, Taguig.
Ratings firm Credit Rating and Investor Services Philippines Inc. earlier assigned an “AAA” rating to the proposed bond issuance. The highest grade assigned to the bond issue reflected Megaworld’s strongest capacity to repay debt obligation, the rating agency said.
Megaworld last month obtained the contract to develop the 8.38-hectare property of state-run Bases Conversion Development Authority in Fort Bonifacio.
Megaworld bagged the project after submitting a winning bid of P3.151 billion, or P37,603.69 per square meter, for the North Bonifacio lots.
Megaworld offered to pay an upfront cash of P1.062 billion and deliver annual revenues of P306.6 million for 12 years to BCDA.
It also committed to invest a minimum of P15.6 billion over 20 years for the development of the property into a mixed-use complex. Jenniffer B. Austria
