Megawide Construction Corporation Lists Another Oversubscribed Fixed-Rate Bond Offering on PDEx

Megawide Construction Corporation (Megawide) listed today a total of P5.0 billion Fixed-Rate Bonds (inclusive of the P1.0 billion oversubscription option) at the Philippine Dealing and Exchange Corp. (PDEx).

The issue received total tenders of P6.4 billion during the public offer period, which ran from June 28 – July 04, 2024, and was 1.6x oversubscribed from the base amount. The P5.0 billion raised 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) carrying a weighted average rate of 7.86% across all maturities.

“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 Edgar Saavedra, Chairman and CEO of Megawide.

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.

The offering received a very warm reception from participating institutions and investors amid the lingering geo-political tension and global economic uncertainties. “PNB Capital together with RCBC and SB Capital congratulate Mr. Saavedra and the Megawide team. They are able to demonstrate their agility to navigate through the challenges and take advantage of opportunities to come out stronger. These themes resonate well with investors, which we believe drove the healthy demand and oversubscription for the offer,” Gerry Valenciano, President and CEO of PNB Capital Corp, noted.

“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. In addition, the initiative is part of our long-term liability management program as we aim to strengthen the group’s balance sheet, while aligning our sources and uses of funds,” Jez dela Cruz, Megawide Group Chief Financial Officer added.

In the first three months of the year, the Company reported a 19% growth in revenues to P5.2 billion and reversed the P7.4-million net loss last year to a P183 million net income. This was attributed to a strong construction segment – driven by a steady accomplishment of ongoing projects – complemented by the recovery in the landport segment and initial contribution from the real estate venture under PH1 World Developers, Inc. Furthermore, Megawide is also expecting to break ground for its transit-centric development (TCD) in Baguio City and a Bus Rapid Transit (BRT) System in Cavite within the year to strengthen its land-based transport-related infrastructure portfolio.

Megawide is one of the leading infrastructure and engineering innovators in the Philippines. Publicly listed since 2011, it is one of the largest contractors for private sector construction projects in the country and a partner of the Philippine Government for flagship infrastructure projects such as he Mactan-Cebu International Airport (25-year development contract) and the Paranaque Integrated Terminal Exchange (35-year development contract). Megawide also designed and constructed the Clark International Airport New Passenger Terminal Building.

It is currently undertaking the construction of the Malolos-Clark Railway Project Package 1, Metro Manila Subway Contract Package 104, and the modernization of Cebu’s historic Carbon Market District. In 2012, the company established Megawide Corporate Foundation, Inc., a non-profit organization focusing on social development projects.