Impact investing: Toward a first-world PH

Abigail Joan Cosico

The absence of large foreign institutional funds in the local bourse has opened up attractive opportunities for domestic-based retail investors looking for value. At present, many are taking advantage of and benefitting from this gap in the Philippine stock market. If given a chance to invest in shares of stock that are aligned with your personal and professional ideals, that promote your advocacies and espouse your own vision for the country—with significant value upside on the horizon—which company will be on your radar?

Of late, the emergence of environmental, social and governance (ESG) investing—more technically known as impact investing—offers practical access to the soft side of investments, specifically the corporate social and environmental responsibility aspects. These initiatives typically focus on water and energy conservation, provision of livelihood and other social services, the delivery of health-care services through medical missions, and granting scholarship programs usually through a corporate foundation.

Immediate needs

While commendable as they address immediate needs of stakeholders, there remain perennial socio-economic challenges that have been plaguing the country, such as traffic congestion and lack of robust public transport infrastructure, solid basic public education, and adequate mass housing, just to name a few. A vision that every Filipino must definitely agree to is that of a first-world Philippines, and it is one that Megawide Construction Corp. aspires for as well. Megawide believes that engineering a first-world Philippines is the long-term solution to achieving lasting and inclusive prosperity and progress for all citizens. As such, it has adopted this for its own vision, guiding not only its business decisions but most importantly, its social investment initiatives as well. For instance, Megawide rose to the challenge of the Department of Education in 2012 to build classrooms across the varying geographical landscape of the archipelago. Megawide was the sole firm that took on the task despite the difficulties it presented, constructing more than 10,000 classrooms in far-flung and underprivileged areas across Luzon in direct support of the government’s public education program.

Global luxury

Toward the perennial problem of traffic, Megawide is pioneering the development of transit-oriented developments such as the Parañaque Integrated Terminal Exchange, whose concession the company was awarded to in 2015. Meanwhile, the country has also finally been placed on the map of global luxury travel with the Mactan International Airport in Cebu and the newly built Clark International Airport passenger terminal building, which was recently named a finalist in the 2021 World Selection of the Prix Versailles Architecture and Design Awards.

Megawide is continuously pursuing a pipeline of projects that are all geared toward creating a world-class, infrastructurally advanced Philippines. These big-ticket projects that the company seeks to participate in particularly include those aimed at expanding and transforming the country’s existing rail and train network, namely the Metro Manila Subway System and North-South Commuter Rail South Line projects.

Now, where and how can ordinary citizens participate and help toward these goals? They are lofty for sure, but not impossible especially for the educated and gainfully employed Filipino middle class. They might not be aware that financial investment strategies can largely help fund these projects to rightful completion and fruition. Putting money behind publicly listed companies such as Megawide is a sure vote of confidence for local enterprises.

Preferred shares

Megawide has been issuing preferred shares to fund the company’s aggressive long-term growth plans.

Something to take advantage of are the company’s Series 4 Preferred Shares. These are typically issued with dividend rates at a premium over benchmark, where yields can be maximized if acquired upon listing and held on to maturity. More details on the offering can be found in the websites of the issue’s underwriters, RCBC Capital Corp. and PNB Capital and Investment Corp.

The beauty of impact investing is that either way, investors are in for a treat—depending on one’s investment horizon and risk appetite—while the country benefits as well. Doing one’s part in pushing the country toward first-world status can be as simple as investing and believing in a common goal and vision, with returns far more than financial and economic. —CONTRIBUTED INQ

The author is Head for Investor Relations of Megawide Construction Corp.

Project Rebound is an advocacy campaign that seeks to help Filipinos overcome the crisis through relevant and timely information they can use to make informed decisions. It is supported by AniNurture, Inc., PMFTC Inc., PLDT, Inc., and Smart Communications, Inc.