Megawide Construction Corp. set the rates for its planned P5-billion bond offering.
Based on the final prospectus posted on its website, the fixed-rate bonds are composed of Series C due 2027, Series D due 2029 and Series E due 2031.
Interest rates for Series C were set at 7.6348 percent per annum, Series D at 8.0580 percent and Series E at 8.4758 percent.
The bonds will have a base offer of P4 billion and oversubscription option for another P1 billion in case of strong demand.
Megawide tapped PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. as joint issue managers, joint lead underwriters and book runners for the transaction.
Offer period will be from June 28, 2024 until July 4, 2024. The bonds will be listed on the Philippine Dealing & Exchange Corp. on July 11, 2024.
Megawide said it would use the proceeds from the fund-raising activity to refinance its debt and fund business development opportunities and other general purposes.
The company said it would refinance P3.492 billion worth of maturing corporate notes obtained from eight financial institutions including Metropolitan Bank and Trust Co., Philippine National Bank, LandBank of the Philippines and Union Bank of the Philippines.
The rest of the proceeds from the bond offering will finance the construction of multi-tower residential development in Cavite and storage and warehousing projects as well as pre-development expenses for pipeline projects, it said.
Megawide through property arm PH1 World Developers Inc. has a partnership with Famtech Properties Inc. for a multi-tower development at One Lancaster Park in Cavite.
It is also exploring activities for potential business ventures in the storage and warehousing segment.
It expressed interest in bidding for the operation of the EDSA Busway to complement its Parañaque Integrated Terminal Exchange (PITX) business.
The NCR EDSA Busway Project involves the financing, design and construction of enhanced bus stations, operations control centers and parking depots and the purchase, operations and maintenance of a high-capacity busway plying through EDSA and other major and feeder roads.
