Megawide to use ₧4-B bond proceeds to term out debt

THE Securities and Exchange Commission (SEC) has approved the public offering of Megawide Construction Corp. for up to P4 billion worth of fixed-rate bonds.

Meeting en banc last week, the SEC approved Megawide’s offering, composed of up to P3 billion of 3.5-year Series A bonds due 2026 and 5-year Series B bonds due 2027, with an oversubscription option of up to P1 billion.

Net proceeds from the offer could amount to P3.97 billion, assuming the overallotment option is fully exercised.

Proceeds will be used to term out Megawide’s short-term debt, fund its capital expenditures and for general corporate requirements.

The bonds will be offered at face value from July 28 to August 5, in time for their listing at the Philippine Dealing and Exchange Corp. on August 17, according to the latest timeline submitted to the SEC.

Megawide has engaged RCBC Capital Corp. and SB Capital Investment Corp. as joint issue managers, joint lead underwriters and bookrunners for the offer.

The company has a number of big projects underway.

Megawide, together with its Japanese partners Tokyu Construction and Tobishima Corp., recently signed Contract Package 104 of the Metro Manila Subway Project.

It is also expanding its transport-centric development portfolio, anchored on a hub-and-spoke model, with the country’s first land port, the Paranaque Integrated Terminal Exchange, at the core. Megawide is also modernizing Cebu’s 100-year old Carbon District, including its public market, through a joint venture with the Cebu City government.

Megawide said it recently received ISO 9001:2015 Certifications for its Precast and Construction Solutions business. Apart from the precast unit, the certification also covers ready-mix concrete, construction equipment and logistics services and formworks businesses.

The ISO 9001:2015 Certification for Quality Management System (QMS) is granted to companies that demonstrate the ability to provide products and services that enhance customer satisfaction and comply with all regulatory and statutory requirements, showing commitment to continually improve products, services, procedures, and processes.

“Our commitment to global standards is further solidified with this ISO Certification. With this under our belt, we will be more capable of supporting the company’s ongoing pivot to infrastructure and, at the same time, enable us to serve other industry players in the same space,” Markus Hennig, Megawide executive vice president for business units, said.

Hennig said that QMS is often a requirement for top-level project tenders, and is indicative of the company’s commitment to operational excellence and innovation.


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