Megawide P5-B bond offer gets go-ahead

MANILA, Philippines — The Securities and Exchange Commission (SEC) has cleared Megawide Construction Corp.’s P5-billion bond offering that will allow tycoon Edgar Saavedra’s company to expand its portfolio and refinance existing debt.

The corporate watchdog on Wednesday said its commission en banc had approved Megawide’s registration statement covering up to P4-billion fixed-rate bonds, with an oversubscription option of up to P1 billion in case of excess demand.

Megawide’s offering will consist of series C bonds due 2027, series D bonds due 2029, and series E bonds due 2031.

“Proceeds will be used for the refinancing of the company’s existing debt obligation and funding of business development opportunities, as well as other general purposes,” the SEC said in a statement.

READ: Megawide aims to raise P5B via fixed-rate bonds sale

The offer period will run from June 24 to July 3, and the bonds will be listed on the Philippine Dealing and Exchange Corp. on July 11.

PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. were tapped as joint issue managers, lead underwriters, and bookrunners for the offer, according to the SEC.

Earlier, the infrastructure and construction firm said it planned to spend up to P3 billion this year in funding expansion plans and beefing up the portfolio of its growing property arm.

A total of P1 billion will be used for expansion of “transit-centric developments,” including transport terminals that will connect commuters to the Parañaque Integrated Terminal Exchange.

Pipeline

The remaining P2 billion, meanwhile, will be used for the pipeline projects of PH1 Developers Inc., Megawide’s real estate arm, as well as the ongoing redevelopment of subsidiary Cebu2World Development Inc.’s mixed-use development in Cebu City.

Megawide reversed its losses in the first quarter of the year, netting P183.4 million during the period as revenues rose

Total revenues jumped by 19 percent to P5.2 billion, buoyed by the construction business.

READ: Megawide group lists third company on PSE

Earlier this month, the Megawide Group listed its third company on the Philippine Stock Exchange—renewable energy firm Citicore Renewable Energy Corp. (CREC).

CREC raised P5.3 billion from its initial public offering (IPO), the proceeds of which will be used to fund the development of solar power projects in at least eight locations across the country.

The company currently has 285.1 megawatts of solar, hydro, and wind projects in its portfolio. The company aims to grow this by 5,000 MW in the next five years, mostly through solar projects, to eventually become one of the country’s largest power generators.

The Megawide Group has so far raised more than P30.5 billion in capital from its three IPOs—Megawide Construction in 2011, Citicore REIT Corp. in 2022 and CREC.