Megawide Construction Corp. said it has raised P5 billion through a corporate notes facility it tapped to retire maturing debts and finance projects.
The company said book building for the notes facility was 1.5x oversubscribed and priced “at the lowest range of the guidance during the book building process.”
“The issuance was likewise very timely, considering the current interest rate environment, which is taking its cue from a low inflation setting, stable currency, and robust macroeconomic prospects, in general. These were also validated by the recent credit rating upgrades the Philippines received from major credit rating agencies Fitch Ratings and Moody’s Investor Service,” Megawide said.
“The lower spreads for the new instrument reflect the significantly reduced risks for Megawide from the time we secured the loan seven years ago, when we were just a pure construction play. With the addition of airport and landport operations, our cash flows have improved considerably and our income streams have become stronger, more stable and predictable,” said Edgar Saavedra, Megawide chairman.
