The Securities and Exchange Commission (SEC) said Wednesday it approved the P5-billion bond offering of construction and engineering firm Megawide Construction Corp.
The SEC rendered effective the registration statement of Megawide involving the issuance of up to P4 billion of fixed-rate bonds, with an oversubscription option for another P1 billion, subject to the company’s compliance with requirements.
The bonds will consist of series C bonds due 2027, series D bonds due 2029 and series E bonds due 2031.
Megawide said it would use the proceeds from the fund-raising activity to refinance debt and fund business development opportunities and other general purposes.
The offering will run from June 24 to July 3. The bonds will be listed on the Philippine Dealing & Exchange Corp. on July 11 based on the latest timetable submitted to the SEC.
Megawide tapped PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. as joint issue managers, joint lead underwriters and bookrunners for the transaction.
The bonds were rated PRS Aa with a stable outlook by Philippine Rating Services Corp.
Obligations rated PRS Aa are of high quality and are subject to very low credit risk. The obligor’s capacity to meet its financial commitment on the obligation is very strong.
Philratings considered Megawide’s solid experience in the construction industry, and its along with vertically integrated operations, that are seen to complement the government’s infrastructure projects.
It also considered the company’s move to diversify into less cyclical sources of revenues, including government infrastructure projects.
Megawide, together with its Japanese partners Tokyu Construction and Tobishima Corp., earlier bagged the Contract Package (CP-104) of the Metro Manila Subway Project with estimated cost of P17.75 billion.
The project involves the construction of underground stations in Ortigas North and South, as well as the tunnels connecting these two locations.
The project is seen to facilitate Megawide’s diversification into railway systems.
It also expressed interest in bidding for the operation of the EDSA Busway, which will complement its Parañaque Integrated Terminal Exchange (PITX) business.
The NCR EDSA Busway Project involves the financing, design and construction of enhanced bus stations, operations control centers and parking depots and the purchase, operations and maintenance of a high-capacity busway plying through EDSA and other major and feeder roads.
