SEC OKs Megawide’s P4 billion bond offering  

MANILA, Philippines — Megawide Construction Corp. has received the green light from the Securities and Exchange Commission (SEC) to issue up to P4 billion worth of fixed-rate bonds.

The offer consists of up to P3 billion of 3.5-year Series A bonds due 2026 and five-year Series B bonds due 2027, with an oversubscription option of up to P1 billion.

Net proceeds from the offer, which could amount to up to P3.97 billion, 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 Aug. 5, in time for their listing on the Philippine Dealing & Exchange Corp. on Aug. 17, according to the latest timeline submitted to the SEC.

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

Megawide reported a net loss of P60 million in the first quarter  compared to a net income  P2.5 million a year ago. Last year, net loss amounted to P342.9 million on revenue of P16.3 billion.

Megawide, a listed engineering company,  is an active participant in the government’s infrastructure program.

The company and its subsidiaries have completed and are in the process of pursuing several projects including the Philippine School for Infrastructure Project Phases 1 & 2; Parañaque Integrated Transport Exchange; and the construction of Terminal 2 of the Mactan-Cebu International Airport.

Its subsidiaries are GMR Megawide Cebu Airport Corp.; Megawatt Clean Energy Inc.; Globemerchants Inc.; Megawide Land, Inc.; Megawide Cold Logistics Inc.; Megawide Construction (BVI) Corp.; MWM Terminals, Inc.; Megawide International Limited; Megawide Construction DMCC; Megawide Construction (Singapore) Pte. Ltd.; and Cebu2World Development Inc.