Megawide eyes return to bond market

Megawide Construction Corp., the listed infrastructure conglomerate, is returning to the bond market to raise as much as P5 billion.

In a stock exchange filing, Megawide said it intends to offer fixed rate bonds consisting of up to P4 billion for the base offer, with an oversubscription option of up to P1 billion.

The offering will be made in up to three series at the discretion of the company.

These are three-year Series C bonds due 2027, five-year Series D bonds due 2029 and seven-year Series E bonds due 2031.

The offer bonds will be subject to the terms and conditions as may be approved by the Megawide board, as well as to the registration requirements of the Securities and Exchange Commission and the listing requirements of the Philippine Dealing and Exchange Corp.

PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. will serve as the joint issue managers, joint lead underwriters and bookrunners of the offer.

In 2022, Megawide successfully raised P4 billion from the issuance of fixed-rate bonds, including an oversubscription option of P1 billion.

Its maiden bond issuance consisted of Series A fixed rate bonds due 2026 and Series B fixed rate bonds due 2027.

The bonds carry coupon rates of 6.9506 percent and 7.9663 percent per annum, respectively, to be paid on a quarterly basis.

Proceeds of its maiden bond offering were used primarily to refinance its short-term debts, fund capital expenditures and other general corporate requirements.

Publicly listed since 2011, Megawide is among the most innovative engineering and infrastructure companies in the country.

The company serves as the private partner of the government in various major public infrastructure projects.