Megawide aims to raise P5B via fixed-rate bonds sale

MANILA, Philippines — Megawide Construction Corp. plans to raise as much as P5 billion from the issuance of fixed-rate bonds to refinance its existing debt and explore business development opportunities.

In a stock exchange filing on Monday, the company led by tycoon Edgar Saavedra said they intend to offer up to P4 billion of three-year Series C bonds due 2027, five-year Series D bonds due 2029, and seven-year Series E bonds due 2031.

There will also be an oversubscription option of up to P1 billion in case of excess demand.

This is still subject to the approval of the Securities and Exchange Commission, Megawide added.

Proceeds will likewise be used to fund “general corporate requirements,” according to Megawide chief financial officer Jez dela Cruz.

In the first nine months of 2023, Megawide recorded P332.5 million in earnings, a reversal of the P970.4 million loss it reported during the same period in 2022.

READ: Megawide bounces back, posts P332M in 9-month profit

Revenues likewise jumped by 47 percent to P15.6 billion due to a strong rebound in construction.

Megawide is currently pursuing big-ticket infrastructure projects in the country, including the Malolos Clark Railway project and the Metro Manila Subway.

It also has a transport and leasing business through Parañaque Integrated Terminal Exchange, which saw revenues grow by 23 percent to almost P340 million from January to November 2023.

READ: Megawide lays down ambitious plans for PH World property unit

PH1 World Developers Inc., the company’s recently acquired property arm, also formed a joint venture with builder ProFriends last month to develop a 380-unit residential high-rise within Lancaster New City in Imus, Cavite province.

The two-tower One Lancaster Park is set for completion in 2026 and will be gradually expanded to nine eight-story buildings.