Megaworld Issues $250M bond

Makati—(PHStocks)—Megaworld Corporation (PSE: MEG) has successfully priced its $250 million, 10-year international bond issue. The bond will carry a coupon of 4.25%. This also represents the company’s first foray into international bond market since 2011.

The transaction marks the lowest ever coupon achieved by Megaworld and the lowest ever coupon for a 10-year bond by any Philippines corporate issuer in history. From a regional perspective, this transaction marks the lowest ever coupon for a South East Asian unrated issuer.

The transaction was priced at 245bps versus the U.S. 10-year treasuries (1.8%) and 125bps versus an implied ROP 10-year bond (3%). Comparing to other Philippine corporates, the new Megaworld transaction on a UST spread and ROP spread basis, is the tightest out of all new issues this year.

The final orderbook was over $500 million, with orders from over 40 accounts. About 98% of the transaction was distributed into Asia with the rest into Europe. In terms of investor type breakdown, 20% of the notes were distributed to fund managers, 35% to banks, 40% to private banks and 5% to insurance companies and other investors.

The net proceeds of the offering are expected to be used for general corporate purposes. UBS acted as the sole bookrunner for the transaction.

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