Manila's Megaworld in $221-mln notes, rights offer

MANILA, Feb 11 (Reuters) - Megaworld Corp (MEG.PS), the Philippines' third-biggest property firm by market value, said on Wednesday it will raise 10.4 billion pesos ($221 million) via a notes and rights offer to help fund a 3-year expansion programme.

The company, builders of high-rise apartments and office buildings for the outsourcing sector, said the amount was part of a total 30 billion pesos it plans to spend over the next three years.

Megaworld said it issued this week 1.4 billion pesos worth of seven-year corporate notes to 19 institutional investors, Kicking off the fund-raising.

Megaworld's board of directors has also approved a one-for-four rights offer which would also entitle shareholders to subscribe to warrants, the company said.

Megaworld, a unit of conglomerate Alliance Global Inc (AGI.PS), remains optimistic about growing its business despite a global credit crunch that has pushed major developed countries into recession.

"Megaworld Corp continues to be confident about the property market especially the sustainability of its two-pronged core business focus, namely the mid-income residential and BPO (outsourcing) office markets," company spokesman Francisco Canuto told Manila's stock exchange.

Analysts expect the Philippines' outsourcing sector to continue growing on expectations that a recession-hit U.S. economy would force more U.S. firms to send their back office functions to low-cost centres. ($1 = 47.07 pesos) (Reporting by Manolo Serapio Jr.; Editing by Rosemarie Francisco and Valerie Lee)