Megawide raises P4B from bond sale
Megawide said the bonds were listed on the Philippine Dealing and Exchange Corp. on Wednesday and the offer was well received by the investing public.
Proceeds will be used to refinance debts and partially cover capital expenditures.
“The company was recently awarded the contract for CP-104 of the Metro Manila Subway System Project worth P18 billion, together with its Japanese consortium partners, and expressed interest in participating in other adjacent packages of the same project,” Megawide said in the statement.
It was also in talks with unnamed parties for the “expansion of its transit-centric developments, anchored on the Parañaque Integrated Terminal Exchange, to strengthen its land-based transport-related infrastructure portfolio.”
Megawide said the bonds consisted of Series A notes, which will mature in 3.5 years and pay 6.9506 percent yearly, and Series B notes, maturing in five years with a yield of 7.9663 percent.
The base offer of P3 billion was also oversubscribed 2.24 times, it added.
“We are very thankful for the investors and our joint lead underwriters for again delivering a successful capital raising campaign. We also would like to thank our regulators, the PDS Group and the [Securities and Exchange Commission], for paving the way for this momentous undertaking,” Megawide chair, president and CEO Edgar Saavedra said in the statement.
“Amid the global tension and local developments, the strong take up of our maiden bonds reflects the investing community’s continued trust and confidence in Megawide’s strategic objectives and long-term direction,” he added.
RCBC Capital Corp. and SB Capital Investment Corp. were hired as joint issue managers, joint lead underwriters and bookrunners.
“Megawide’s long-term growth story, anchored on its pivot to developmental infrastructure, and financial management roadmap sit well with investors. We believe this is one of the main reasons why there was a very healthy demand and oversubscription for the offer,” Jose Luis Gomez, president and CEO of RCBC Capital Corp, said in the statement.
