Bond issue plans OKd

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    The Securities and Exchange Commission (SEC) has approved the fund raising plans of Filinvest Land, Inc., Megawide Construction Corp. and Cityland Development Corp.

    Filinvest Land will issue up to P6.75 billion of bonds for the first tranche of the offering, with an oversubscription option of up to P2.25 billion, with tenors of three years due 2023 and 5.5 years due 2026, respectively. The company expects to net P8.88 billion from the offer, should the oversubscription option be fully exercised

    Proceeds will be used to refinance Filinvest’s maturing debt and to fund its capital expenditures and general corporate requirements.

    Megawide intends to offer 30 million non-voting perpetual Series 2 Preferred Shares, with an oversubscription option of up to 20 million non-voting perpetual Series 2 Preferred Shares, priced at P100 apiece.

    The preferred shares will be listed and traded on the Main Board of the Philippine Stock Exchange.

    Megawide expects to net around P4.96 billion, including the proceeds from the oversubscription option, and will use it to partially finance the company’s existing projects.

    Cityland at the same time will offer commercial papers, where worth P1.39 billion. Proceeds from the offer will be used to partially finance the construction of the company’s projects and to pay its maturing notes.

    The SEC has approved Cityland’s request for exemption from the submission of an underwriting agreement for the offer.