SEC approves Megawide's P5-B bond offer

The Securities and Exchange Commission (SEC) on Wednesday announced it has approved Megawide Construction Corp.'s P5-billion fund raising initiative through the sale of fixed-rate bonds to the investing public.

In a statement, the SEC said it has "considered favorably" the P5-billion bond offering by Megawide.

The corporate regulator said its Commission en Banc, on June 18, resolved to render the registration statement of Megawide effective, covering up to P4 billion of fixed-rate bonds, with an oversubscription option of up to P1 billion, subject to the company's compliance with certain remaining requirements.

Megawide's bond offer will consist of three-year Series C bonds due 2027, five-year Series D bonds due 2029, and seven-year Series E bonds due 2031.

The company is expected to net P4.93 billion from the bond offer should the oversubscription option be fully availed.

Megawide intends to use the proceeds of its bond offer for refinancing its existing debt obligations and funding of business development opportunities, as well as other general purposes.

The SEC said the bonds will be offered at face value from June 24 to July 3 and will be listed on the Philippine Dealing & Exchange Corporation on July 11, according to the latest timetable submitted to the SEC.

Megawide tapped PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. as joint issue managers, joint lead underwriters, and bookrunners for the offer. — VDV, GMA Integrated News