Megaworld eyes dollar notes issue

MANILA, Philippines - Property giant Megaworld Corp. plans to raise fresh capital to back up its P35-billion spending program this year.

“Megaworld proposes to issue 10-year US dollar-denominated fixed-rate notes which will mature in 2023,” the firm told the local stock exchange.

“Proceeds of the issue will be used by the company for general corporate purposes,” it added.

Early this year, the property arm of conglomerate Alliance Global Group Inc. committed to spend a record P35 billion for its property projects this year amid the property boom, up from P25 billion in 2012.

The Andrew Tan-led property group, which recorded P63.5 billion in residential reservation sales last year, will launch at least 10 new projects in the first half alone.

Megaworld said the corporate notes will be listed in the Singapore Exchange Securities Trading Ltd. (SGX-ST).

In April last year, Megaworld raised $200 million from the issuance of seven-year, dollar-denominated notes that were used to pay debts and fund operations. The bonds were listed in the SGX-ST.

The Megaworld group is composed of three brands: Megaworld, medium-cost housing arm Empire East Land Holdings Inc. and affordable housing unit Suntrust Properties Inc.

Like other real estate companies, the listed firm is benefiting from low interest rates that spur home loans, increasing income of the middle class, high demand amid a backlog and growth in the office segment driven by the outsourcing industry.

In more than 20 years of operations, the group has completed more than 240 residential and office buildings with a total floor area of around six million square meters.

Megaworld, which pioneered the “live-work-play-learn” concept, has developed township and business park projects like the Eastwood City, Forbestown Center, McKinley Hill and Newport City.

Megaworld’s profit climbed 21 percent to P7.3 billion as the property group recorded more than P63 billion in reservation sales involving 12,000 residential units.