Megaworld to raise funds for 3-yr capex program

ABS-CBN News

Posted at Feb 11 2009 11:48 AM | Updated as of Feb 11 2009 08:17 PM

Property giant Megaworld Corp. of tycoon Andrew Tan is embarking on a fund-raising campaign to partly fund its P30 billion capital spending program over the next three years.

In a statement, Megaworld said it intends to generate an aggregate amount of P10.4 billion within the three-year period, of which P1.4 billion was raised through a corporate notes issue that closed Tuesday.

The balance of P9 billion would be raised via a pre-emptive rights offer with detachable warrants to holders of Megaworld common shares. The planned rights offer has been approved by the company's board of directors.

Megaworld noted that the rest of its P30 billion spending budget would be funded internally.

The company said its new fund-raising campaign would further enhance its strong capital base, enabling it to ride out the global financial turmoil and maintain its market leadership while capitalizing on new opportunities along the way. 

Megaworld expects to accommodate around 14,000 jobs in the business process outsourcing sector from 2009 to 2010, with the completion this year of five office buildings with more than 100,000 square meters of office space. The office projects are located in Eastwood City, McKinley Hill and Newport City.