More firms tapping debt market for funds

MANILA, Philippines — Publicly listed companies are tapping the debt market for new offerings to raise funds for refinancing and expansion.

The Securities and Exchange Commission (SEC) has given its green light to the respective public offerings of Filinvest Land Inc., Megawide Construction Corp. and Cityland Development Corp.

FLI will offer up to P30 billion of fixed-rate bonds under the SEC’s shelf registration program, while Megawide’s offer comprises of P5 billion preferred shares.

Cityland, meanwhile, will issue P1.4 billion in commercial papers.

FLI’s offering consists of three-year bonds due 2023 and 5.5-year bonds due 2026. It will offer up to P6.75 billion of bonds for the first tranche of the offering, with an oversubscription option of up to P2.25 billion.

The company expects to net P8.88 billion from the offer, should the oversubscription option be fully exercised, proceeds of which will be used to refinance Filinvest’s maturing debt and to fund its capital expenditures and general corporate requirements.

FLI tapped BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp. and SB Capital Investment Corp. as joint lead underwriters and bookrunners for the offer. First Metro Investment Corp. will serve as co-lead underwriter.

Megawide’s preferred share sale consists of 30 million non-voting perpetual Series 2 Preferred Shares, with an oversubscription option of up to 20 million non-voting perpetual Series 2 Preferred Shares, priced at P100 apiece.

Assuming the oversubscription option is fully exercised, Megawide expects to net around P4.96 billion for the offer, partially to fund the company’s existing projects, including the Mactan-Cebu International Airport and Parañaque Integrated Terminal Exchange, as well as the expansion of its pre-cast plant capacity, among others.

Cityland expects to raise around P1.39 billion. Proceeds from the issue will be used to finance the construction of the company’s projects and to pay its maturing notes.