MANILA -- Diversified engineering and infrastructure conglomerate Megawide Construction Corporation Thursday signed a PHP5-billion corporate note (CN) facility, the proceeds of which it will use to retire maturing debt obligation, fund growth projects, and for general corporate purposes.
The issuance was timely considering the current interest rate environment, which is taking its cue from a low inflation setting, stable currency, and robust macroeconomic prospects, in general.
These were also validated by the recent credit rating upgrades the Philippines received from major credit rating agencies Fitch Ratings and Moody’s Investor Service.
In addition to reference rates, the company’s CNs were priced at the lowest range of the guidance during the book building process.
“The lower spreads for the new instrument reflect the significantly reduced risks for Megawide from the time we secured the loan seven years ago, when we were just a pure construction play. With the addition of airport and landport operations, our cash flows have improved considerably and our income streams have become stronger, more stable and predictable,” Megawide Chairman and Chief Executive Officer Edgar Saavedra said.
In terms of market reception, the facility attracted and was participated in by some of the largest financial institutions in the country, resulting in a 1.5 times oversubscription for the issuance.
“The strong interest we received from both existing and new lenders of the company is a positive indication of the financial community’s confidence in the company’s future growth prospects,” Chiqui Huang, President of BPI Capital Corporation, the Mandated Lead Arranger and Bookrunner of the issue, said. (PR)
