MEGAWIDE PLANS P 5-B FRESH BOND FORAY

Infrastructure and construction giant Megawide Construction Corp. plans to raise as much as P5 billion from the issuance of fixed-rate bonds to refinance its existing debt and explore business development opportunities.

In a stock exchange filing on Monday, the company led by tycoon Edgar Saavedra said they eyed offering up to P4 billion of three-year Series C bonds due 2027, five-year Series D bonds due 2029 and seven-year Series E bonds due 2031.

There will also be an oversubscription option of up to P1 billion in case of excess demand.

This is still subject to the approval of the Securities and Exchange Commission, Megawide added.

Proceeds will be used to fund “general corporate requirements,” according to Megawide chief financial officer Jez dela Cruz.

In the first nine months of 2023, Megawide recorded P332.5 million in earnings, a reversal of the P970.4-million loss it reported during the same period in 2022.

Revenues likewise jumped by 47 percent to P15.6 billion due to a strong rebound in construction.

Megawide is currently pursuing big-ticket infrastructure projects in the country, including the Malolos Clark Railway project and the Metro Manila Subway.

It likewise has a transport and leasing business through Parañaque Integrated Terminal Exchange, which saw revenues grow by 23 percent to almost P340 million in the January to November 2023 period.

PH1 World Developers Inc., the company’s recently acquired property arm, also formed a joint venture with builder ProFriends last month to develop a 380-unit residential high-rise within Lancaster New City in Imus, Cavite province.