PROPERTY developer Megaworld Corp. said its board of directors has approved the company’s debt-securities program by issuing up to P30 billion of fixed-rate bonds.
The company said it will initially issue a total of P12 billion worth of dent, P8 billion of which are principal offering and P4 billion for its oversubscription option.
“Megaworld has appointed BDO Capital and 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,” it said. “The determination of pricing, terms and conditions, and other features of the bonds is delegated to Megaworld management.”
Last year the company, led by businessman Andrew L. Tan, allocated capital expenditures of P55 billion.
It said the spending – which it will carry out along with its units Global-Estate Resorts Inc., Empire East Holdings Inc. and Suntrust Properties Inc.—will be used to expand its portfolio of rental businesses, mainly composed of office buildings and shopping malls.
Three quarters of the capital spending for 2016 were used for development projects, particularly on the construction of new malls, commercial centers, office buildings and residential projects in townships, while the remaining 25 percent will be used for land acquisition and investment properties.
For this year, Megaworld said it will open four new hotels under its portfolio within the year, to further boost tourism in its various developments across the country.
The company is set to open the Marriott Courtyard Hotel in Iloilo Business Park and the Savoy Hotel Boracay in Boracay Newcoast by the first half of this year. It will then launch Savoy Newport Hotel in Newport City in Pasay and Hotel Lucky Chinatown in Binondo, Manila, by the second half of the year.
“We see tourism as a potential driver of growth for Megaworld as we draw more people to our developments. Within the next three years to five years, we hope to see a bigger slice of hotel earnings in our revenue pie as we open our new hotels,” Kevin Tan, the company’s senior vice president, said earlier.
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