Megawide Construction Corp. said Thursday it raised P5 billion in fresh capital from the issuance of peso-denominated fixed-rate bonds, as the attractive interest rates drew strong demand.
Megawide said in a disclosure to the stock exchange the bond offering was 1.6-times oversubscribed, with total demand reaching P6.4 billion. The strong investor interest enabled Megawide to exercise the over-allotment option and increase total proceeds to P5 billion.
The bond consisted of Series C (P3.1 billion maturing in 3 years from issue date), Series D (P1.1 billion maturing in 5 years) and Series E (P819.2 million maturing in 7 years).
Interest rate for Series C was set at 7.6348 percent per annum, Series D at 8.0580 percent and Series E at 8.4758.
“We are very thankful for the unwavering support and confidence of our underwriters and investors, and we will look forward to this same enthusiasm as we embark on more exciting projects towards engineering a first-world Philippines. Our thrust to grow in more scalable platforms that offer synergies within our internal value chain paves the way for new opportunities.” said Megawide chairman and chief executive Edgar Saavedra.
RCBC Capital Corp., SB Capital Investment Corp. and PNB Capital and Investment Corp. were the joint issue managers, joint lead underwriters and bookrunners for the exercise, with RCBC-Trust and Investment Group acting as trustee.
Megawide said the offering received a very warm reception from participating institutions and investors amid the lingering geo-political tension and global economic uncertainties.
PNB Capital Corp. president Gerry Valenciano said the offering drew strong demand as Megawide was able to demonstrate its ability to navigate through the challenges and take advantage of opportunities.
“These themes resonate well with investors, which we believe drove the healthy demand and oversubscription for the offer,” said Valenciano.
Megawide group chief financial officer Jez dela Cruz said the bond offering is part of the group’s long-term debt liability management program.
“The successful outcome of the bond offering is a vote of confidence in our ability to get back on our feet and sustain our growth momentum as we deliver on our existing and upcoming projects,” said dela Cruz.
