Megawide raising P3B from debt sale

MANILA, Philippines—Newly listed construction and engineering firm Megawide Construction is raising P3 billion from the sale of debt paper to selected institutional investors.

In a disclosure to the Philippine Stock Exchange on Wednesday, Megawide said its board of directors had approved the issuance of fixed rate corporate notes of up to P3 billion. The board also approved the first drawdown of up to P1 billion to replace existing or maturing obligations.

Megawide vice president Louie Ferrer said in an interview on Wednesday the corporate notes would have a tenor of five years. BDO Private Bank had been mandated to arrange the issuance, he added.

“Proceeds will be used for our working capital. We have a lot of plans as we prepare to enter the infrastructure business,” said Ferrer.

Megawide, whose current business is mostly on high-rise residential property business such as for major client SM Development Corp., is now keen on making a big move into infrastructure to heed the government’s call for public-private partnership.