SEC approves Filinvest Land, Megawide, Cityland offerings

THE Securities and Exchange Commission (SEC) has approved the planned public offerings of Filinvest Land, Inc., Megawide Construction Corp. and Cityland Development Corp.

In a statement on Wednesday, the corporate regulator said it cleared at a meeting on Oct. 27 the P30-billion fixed-rate bond offering of Filinvest, the P5-billion perpetual preferred shares offering of Megawide, and the P1.4-billion commercial papers of Cityland.

Filinvest applied in August to shelf register up to P30-billion bonds, from which it will do an initial offering of up to P6.75 billion bonds with an oversubscription option of up to P2.25 billion.

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It will consist of bonds maturing in 2023 and 2026, which are expected to generate up to P8.88 billion in net proceeds. This will be used to refinance Filinvest’s maturing loans and support capital expenditures and general corporate purposes.

The company engaged BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., and SB Capital Investment Corp. to be joint lead underwriters and bookrunners for the offering. It also tapped First Metro Investment Corp. as a co-lead underwriter.

For Megawide, the company sought last month the SEC approval to offer 30 million non-voting perpetual Series 2 preferred shares, which will have an oversubscription option of up to 20 million shares, to be listed and traded on the main board of the Philippine Stock Exchange.

The shares will be priced at P100 each, which could generate about P4.96 billion in net proceeds for the company, assuming the full exercise of the oversubscription option.

Megawide intends to use the proceeds to support several existing projects, such as the Mactan-Cebu International Airport, Parañaque Integrated Terminal Exchange and pre-cast plant capacity expansion.

Cityland was allowed to offer commercial papers and be exempted from submitting an underwriting agreement for the issuance.

It applied with the regulator for permission to sell the papers to generate around P1.39 billion in net proceeds. This will support the company’s pipeline of construction projects and refinancing of maturing debt.

DEL MONTE RAISES P6.47B

In a separate announcement, Del Monte Philippines, Inc. (DMPI) said it has generated P6.47 billion from the issuance of fixed-rate bonds, which it will list on the Philippine Dealing and Exchange Corp. on Friday.

First Metro, one of the company’s issue managers, underwriters and bookrunners for the offering, said in a statement that the recently concluded bond issuance of DMPI was 1.29x oversubscribed.

“The success of the bond offering reflects the investing public’s confidence and optimism in DMPI’s strong fundamentals and long-term prospects as well as the company’s financial strength and capability to meet our financial obligations,” DMPI President and CEO Joselito Campos, Jr. said in the statement.

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The company’s issuance is composed of three-year and five-year bonds which were given a PRS Aaa credit rating by the Philippine Rating Services Corp. (PhilRatings). PRS Aaa is the top credit rating given by PhilRatings, which means the bonds are of highest quality and have minimal credit risk.

Aside from First Metro, DMPI tapped BDO Capital, China Bank Capital and RCBC Capital Corp. as joint issue managers, joint lead underwriters and joint bookrunners for the offering. — Denise A. Valdez

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Article and Photo originally posted by Business World last October 29, 2020, 12:07am.

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