MANILA - Property giant Megaworld Corp. is planning to issue up to P5 billion in unsecured fixed-rate bonds to partially fund its proposed central district development in Fort Bonifacio, Taguig City.

In a disclosure to the local bourse on Tuesday, Megaworld said it intends to issue the bonds in an aggregate principal amount of P3 billion, with an oversubscription option for an additional P2 billion. The unsecured fixed-rate bonds will have a term of 5 years and 6 months.

Megaworld will be appointing BDO Capital and Investment Corp. and the Hongkong Shanghai Banking Corp. Ltd. as joint lead managers and bookrunners for the issue.

According to the company, Credit Rating and Investors Service Philippines Inc. has assigned the highest rating of "AAA" to its proposed bond issuance. The rating reflects Megaworld's strong capacity to repay debt obligations.

"Proceeds from the bond offering will be used to partially fund the capital expenditure for Megaworld's proposed central district development in Fort Bonifacio, and for general corporate purposes," Megaworld said.

Last week, the Bases Conversion Development Authority (BCDA) awarded Megaworld a contract to develop the former's 8.38-hectare property in Fort Bonifacio.

Megaworld trumped rival Robinsons Land Corp. in a competitive challenge for the joint venture project with the government by increasing its cash offer to P3.1511 billion. The amount was slightly higher than Robinsons Land's P3.1507-billion offer.

Earlier, Megaworld said it will spend P20 billion to transform the BCDA property into a mixed-use complex, mostly consisting of residential units. To date, the company has 5 township projects within Metro Manila, as well as stand-alone projects in the Makati central business district.