SEC APPROVES MEGAWIDE’S P 4-B BOND SALE
Megawide Construction Corp. has bagged regulatory approval sell up to P4 billion in bonds from July 28 to Aug. 5.
The Securities and Exchange Commission (SEC) said in a statement on Friday the debt sale complied with all of its requirements.
Megawide, a construction and infrastructure giant led by business tycoon Edgar Saavedra, plans to offer up to P3 billion of 3.5-year Series A bonds due 2026 and five-year Series B bonds due 2027. There was also an oversubscription option of up to P1 bilInterested to meet excess demand.
Proceeds will be used to refinance debts, fund its capital expenditures, and for general corporate requirements.
Megawide earlier hired RCBC Capital Corp. and SB Capital Investment Corp. as the joint issue managers, joint lead underwriters and bookrunners for the bond sale.
Megawide’s infrastructure portfolio includes the Mactan Cebu International Airport and Parañaque Integrated Terminal Exchange.
Last June, Philippine Rating Services (PRS) Corp. issued the proposed debt sale a PRS Aa rating. This indicated very low credit risk.
“The obligor’s capacity to meet its financial commitment on the obligation is very strong. A ‘stable’ outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months,” Philratings said.
Philratings said the credit score was guided by the company’s “solid experience” in construction, integrated operations and expansion via public-private partnership and “Build, Build, Build” projects.
Megawide’s transport infrastructure operations were likewise poised to recover in the postpandemic period, it added.