The Securities and Exchange Commission (SEC) has approved public bond and preferred share offerings of Filinvest Land Inc. (FLI), Megawide Construction Corp. and Cityland Development Corp., with a combined amount of P36.4 billion.
In its en banc meeting on October 27, the agency approved the registration statements of FLI covering up to P30 billion of fixed-rate bonds under a shelf registration, Megawide for up to P5 billion of perpetual preferred shares and Cityland for up to P1.4 billion of commercial papers.
FLI will offer P6.75 billion of bonds for the first tranche of the offering, with an oversubscription option of up to P2.25 billion. The offer will consist of 3-year bonds due 2023 and 5.5-year bonds due 2026.
The company expects to net P8.88 billion from the offer, should the oversubscription option be fully exercised. The proceeds will be used to refinance Filinvest’s maturing debt and to fund its capital expenditures and general corporate requirements.
The bonds, which will be offered at face value, will be listed and traded on the Philippine Dealing and Exchange Corp.
BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp. and SB Capital Investment Corp. were picked as joint lead underwriters and bookrunners for the offer, while First Metro Investment Corp. is the co-lead underwriter.
Megawide, meanwhile, will offer 30 million non-voting perpetual series 2 preferred shares, with an oversubscription option of up to 20 million non-voting perpetual series 2 preferred shares, priced at P100 apiece.
The preferred shares will be listed and traded on the main board of the Philippine Stock Exchange.
Assuming the oversubscription option is fully exercised, Megawide expects to net around P4.96 billion for the offer. Proceeds will be used to partially finance the company’s existing projects, including the Mactan-Cebu International Airport and Parañaque Integrated Terminal Exchange, as well as the expansion of its pre-cast plant capacity, among others.
Meanwhile, Cityland’s offer consists of commercial papers, in which the company expects to net around P1.39 billion.
Proceeds from the offer will be used to partially finance the construction of the company’s projects and to pay its maturing notes.
The SEC also approved Cityland’s request for exemption from the submission of an underwriting agreement for the offer.