PHILIPPINE Rating Services Corp. (PhilRatings) retained the highest rating for Megaworld Corp.’s P12-billion fixed-rate bonds issued in 2017.
In a statement Thursday, the local debt watcher assigned anew a PRS Aaa rating for the listed property developer, indicating that the company has an “extremely strong” capacity to meet its obligations.
The rating carries a stable outlook, which means that it is unlikely to change in the next 12 months.
The Series B fixed rate bonds will mature in 2024, with an annual coupon rate of 5.3535%. The offering’s base size was at P8 billion, plus P4 billion for the oversubscription option, taken up by a wide range of investors such as banks, investments funds, insurance companies, and the retail market.
“The assigned issue credit rating takes into account Megaworld’s robust liquidity, sound capitalization, well-experienced management and favorable industry outlook,” PhilRatings said in a statement.
Megaworld currently has 24 estates under its portfolio, including Eastwood City in Quezon City, Newport City in Pasay City, Boracay Newcoast, Iloilo Business Park, and Uptown Bonifacio in Taguig.
It looks to launch two to three estates every year, as it targets to end 2020 with 30 townships.
As part of its expansion program, Megaworld has committed to spend P300 billion over the next five years for its residential, office, retail, and hotel projects. It will spend P65 billion for this year alone.
The company is part of tycoon Andrew L. Tan’s holding firm, Alliance Global Group, Inc., which also has interests in liquor through Emperador, Inc., gaming through Travellers International Hotel Group, Inc., quick-service restaurant through Golden Arches Development, Inc., and infrastructure through Infracorp, Inc.
Megaworld’s net income attributable to the parent rose 16% to P8.307 billion in the first half of 2019, after gross revenues also went up 16% to P29.586 billion.
Shares in Megaworld jumped 3.19% or 16 centavos to close at P5.18 apiece at the stock exchange on Thursday. — Arra B. Francia