Megaworld Corporation is issuing up to P5 billion worth of unsecured fixed-rate bonds, consisting of a principal amount of P3 billion with an oversubscription option for an additional P2 billion.

In a disclosure to the Philippine Stock Exchange Tuesday, Megaworld said the bonds with a term of five years and six months will be registered with the Securities and Exchange Commission.

The firm said proceeds from the bond offering will be used to partially fund the capital expenditure for Megaworld’s proposed central business district development in Fort Bonifacio and for general corporate purposes.

Credit Rating and Investors Services Philippines Inc. has assigned a “AAA” rating to the proposed bond issuance, its highest rating, reflecting strongest capacity to repay debt obligations.

The Hongkong and Shanghai Banking Corporation Limited has been named as one of the lead managers and bookrunners for the issue.

Megaworld is planning to invest at least P15.6 billion over the next 20 years to develop an 8.38-hectare property in North Bonifacio into a mixed-use complex after beating a swiss challenge to its unsolicited proposal.

Andrew Tan’s Megaworld bagged the right to develop the lot for P3.15 billion. BCDA vice-president for business development Aileen Zosa said that Megaworld has to put up P1.06 billion upfront cash to BCDA during the contract signing scheduled for October 8 this year.

Since Megaworld has submitted a P700 million security proposal to BCDA, Zosa said that Megaworld has the option to get back the check or add the remaining P632 million to complete the required P1.06 billion upfront cash payment.