Property developer Megaworld Corp. said its board approved the company’s P30-billion debt securities program.
Megaworld said in a disclosure to the stock exchange it would initially issue P8 billion worth of fixed-rate bonds with an oversubscription option for another P4 billion.
The property arm of tycoon Andrew Tan appointed BDO Capital & Investment Corp. as issue manager, lead underwriter and bookrunner for the bonds.
The proceeds from the bonds will be used to fund the capital expenditures of the company.
“The determination of pricing, terms and conditions and other features of the bonds is delegated to Megaworld management,” the company said.
The bonds will be registered with the Securities and Exchange Commission and will be listed with the Philippine Dealing and Exchange Corp.
Megaworld hiked its five-year capital spending program for 2015 to 2019 to P285.8 billion from P230 billion as it plans to launch new townships and expand existing mixed-use developments.
Megaworld is developing 20 integrated urban townships across the country and has total land bank spanning over 4,000 hectares. Of the 20 township developments, 11 are in provincial areas and 9 in Metro Manila.
Megaworld also owns 100 percent of Suntrust Properties Inc., 82 percent of Global-Estate Resort Inc. and 82 percent of Empire East Holdings Inc. It has already built over 350 residential, office and commercial towers across the country.
Megaworld earmarked P55 billion in capital expenditures in 2016 primarily to aggressively expands its rental portfolio, particularly its mall and office businesses.
About 75 percent of the capital spending for the year was set aside for development projects, particularly on the construction of new malls, commercial centers, office buildings and residential projects in townships, while 25-percent was used for land acquisition and investment properties.