Ed Saavedra raises P4B from Megawide’s oversubscribed bond offer

Megawide Construction Corp. of business magnate Ed Saavedra raised P4 billion from a warmly-received debt offering

Demand for Megawide’s 3.5 and five-year bonds, which carried a coupon of 6.9506 percent and 7.9663 percent, respectively, reached more than two times the offering.

Megawide said the robust demand for its debt securities prompted them to upsize the offering by P1 billion. The company received total bids of P6.71 billion.

“We are very thankful for the investors and our joint lead underwriters for again delivering a successful capital raising campaign. We also would like to thank our regulators, the PDS Group and the SEC, for paving the way for this momentous undertaking. Amid the global tension and local developments, the strong take up of our maiden bonds reflects the investing community’s continued trust and confidence in Megawide’s strategic objectives and long-term direction,” said Saavedra, chairman and president of Megawide.

RCBC Capital Corp. and SB Capital Investment Corp. were the joint issue managers, joint lead underwriters and bookrunners for the offering.

“Megawide’s long-term growth story, anchored on its pivot to developmental infrastructure, and financial management roadmap sit well with investors. We believe this is one of the main reasons why there was a very healthy demand and oversubscription for the offer,” said Jose Luis Gomez, president and CEO of RCBC Capital Corp.

Net proceeds of the bond issue will be used by Megawide primarily to refinance its short- term debts, fund its capital expenditures and other general corporate requirements.

Megawide and its Japanese partners were recently awarded the contract for CP-104 of the Metro Manila Subway System Project worth P18 billion. It is also in different stages of discussion with several parties for the expansion of its transit-centric developments anchored on the Parañaque Integrated Terminal Exchange to strengthen its land-based transport-related infrastructure portfolio.

https://bilyonaryo.com/2022/08/17/ed-saavedra-raises-p4b-from-megawides-oversubscribed-bond-offer/?fbclid=IwAR0xj0zChZjFCp-WMFeudNvHMHy07JYoyOPZ3AI_YrAW1dhO_E9Sd553xGU