By Cris Larano 
 

MANILA--Philippine property developer Megaworld Corp. (MEG.PH) raised $250 million from a 10-year U.S. dollar-denominated fixed-rate bond that was priced at 4.25%, sole bookrunner UBS AG (UBS) said Thursday.

UBS said in a statement that the initial guidance was 4.25%-4.50% but was tightened to "the lowest-ever yield for a 10-year Philippine corporate bond." It said the yield was 1.25 percentage points above 10-year Philippines dollar-denominated government bonds and 2.45 percentage points above similar-dated U.S. treasurys.

Megaworld has said that it will use the proceeds from the bond sale for general purposes. The company said in January that it planned to spend a record 35 billion Philippine pesos ($854 million) this year on projects, primarily residential.

UBS said the orderbook for Megaworld's bond offer was "over $500 million" as more than 40 investors, including fund managers, banks and insurance firms, participated in the fund-raising exercise Wednesday.

Megaworld's bond due 2023 will be listed on the Singapore Stock Exchange.

Write to Cris Larano at cris.larano@dowjones.com