MANILA - The Securities and Exchange Commission (SEC) has approved a plan of Megaworld Corp. to issue P5 billion worth of fixed-rate bonds.

Documents filed with the SEC showed that the Andrew Tan-led property giant will issue P3 billion in unsecured fixed-rate bonds, with an oversubscription option for another P2 billion.

Proceeds of the bonds, which will have a term of 5 years, will be "used to partially fund the capital expenditure for Megaworld's proposed central district development in Fort Bonifacio and for general corporate purposes," the company said.

Megaworld has appointed BDO Capital and Investment Corp., and the HongKong and Shanghai Banking Corp. to be the 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.

The Bases Conversion Development Authority (BCDA) has 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.

Megaworld said it will spend P20 billion to transform the BCDA property into a mixed-use complex, mostly consisting of residential units.