Megawide allots P3B for 2024 expansion
MANILA, Philippines — Tycoon Edgar Saavedra-led Megawide Construction Corp. will spend up to P3 billion this year to fund its expansion plans and beef up the portfolio of its growing property arm.
The infrastructure and construction firm on Wednesday said P1 billion of the total would be used for expansion of “transit-centric developments.”
These include intermodal transport terminals across Luzon “using a hub-and-scope model that connects to PITX (Parañaque Integrated Terminal Exchange) at the core,” Megawide chief financial officer Jez dela Cruz said in a Viber message.
The remaining P2 billion will be used for the projects of PH1 World Developers Inc., Megawide’s recently acquired real estate arm, and the ongoing redevelopment of subsidiary Cebu2World Development Inc.’s Carbon Market District in Cebu City.
“As regards funding, PH1 World’s [capital expenditure, or capex] will be sourced largely from the proceeds of its ongoing bond issuance, while Cebu2World’s capex will be partially funded by its existing project financing loan,” Megawide said in a stock exchange filing.
Big-ticket infra projects
The company is pursuing several big-ticket infrastructure projects in the country, including the Malolos Clark Railway project and the Metro Manila Subway.
Megawide reversed its losses in the first quarter of the year, recording a net profit of P183.4 million as revenues improved.
READ: Megawide erases losses amid flurry of projects
Total revenues during the period jumped by 19 percent to P5.2 billion.
The construction business accounted for P4.9 billion in revenues, up by 16 percent.
Last month, Megawide announced plans to raise as much as P5 billion from the debt market to refinance obligations and “explore business development opportunities.”
The company will offer up to P4 billion three-year Series C bonds due 2027, five-year Series D bonds due 2029, and seven-year Series E bonds due 2031. An oversubscription option of up to P1 billion will also be available in case of excess demand.
Meanwhile, PH1 World in March formed a joint venture with builder ProFriends 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. —Meg J. Adonis
