Megaworld raises $350M from overseas bond sale, fetches lowest coupon rate

Andrew Tan-led Megaworld Corp. raised $350 million from the issuance of dollar-denominated senior unsecured fixed rate notes, fetching the lowest ever coupon for a Philippine corporate entity for its tenor.

Slated for listing on the Singapore Exchange Securities Trading Ltd., the seven year bonds carried a coupon rate of 4.125% per annum.

The bond offer was strongly received, wit orders reaching $1 billion prior to the release of the final price guidance.

About 40% of the bonds were allocated to fund managers and asset managers from Asia and Europe.

Megaworld said the bond sale was completed in just 11 days, the fastest completion among dollar bond issuances by a Philippine entity.

“This issuance puts Megaworld in a good position to benefit from the eventual recovery of the Philippine economy. In spite of the pandemic, demand for real estate offerings has remained strong as many still view it as a safe investment.

Additionally, we foresee that business process outsourcing (BPO) companies may need more office spaces because of physical distancing requirements. This infusion of funds will support our investment pipeline and future land banking initiatives,” said Kevin L. Tan, chief strategy officer of Megaworld.

Citigroup Global Markets Ltd. and The Hongkong and Shanghai Banking Corp. Ltd. were appointed as joint global coordinators, joint lead managers and joint bookrunners, while Credit Suisse (Singapore) Ltd. and J.P. Morgan Securities plc served as joint lead managers and joint bookrunners.

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