The Securities and Exchange Commission (SEC) has approved construction group Megawide Construction Corp.’s P5- billion bond sale.
The bonds will consist of series C bonds due 2027, series D bonds due 2029, and series E bonds due 2031 and are divided into an initial P4 billion and another P1 billion for the oversubscription option.
“Assuming the oversubscription is fully exercised, the listed company expects to net P4.93 billion from the offer. Proceeds will be used for the refinancing of the company’s existing debt obligations and funding of business development opportunities, as well as other general purposes,” the SEC said.
Megawide earlier said the bond has been given a PRS Aa by credit rater Philippine Ratings Corp. (PhilRatings) with a stable outlook, citing its “solid experience in the construction industry, along with vertically integrated operations, that are seen to complement the government’s infrastructure projects.”
PhilRatings also took note of the company’s expansion projects with the aim of diversifying into less cyclical sources of revenues as well as the “favorable industry outlook and opportunities, backed by the government’s infrastructure projects.”
Megawide tapped PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. as the joint issue managers, joint lead underwriters and bookrunners for the fund raising.
