Funds raised for MCIA expansion, Carbon redevelopment
CEBU CITY, Philippines — Conglomerate Megawide Construction Corporation will be raising up to P5 billion in funds to implement several government-tied projects.
In a press statement dated and submitted on September 30, 2020, to the local bourse, Megawide said they had filed its application last September 21 for the issuance of P3 billion worth of new preferred, with an oversubscription option of up to P2 billion.
“The company is raising fresh funds from the capital markets through the issuance of P3 billion worth of new preferred shares, with an oversubscription of up to P2 billion, for a maximum issuance of P5 billion,” portions of the press statement stated.
The engineering and construction giant said funds generated from the issuance would be used to finance growth of several big-ticket projects in the country.
These included those situated in Cebu such as the initial design stages for the Mactan Cebu International Airport (MCIA) multi-use development, the airport’s expansion, and the Carbon Market Redevelopment.
The proceeds will also be used for the development of the 1.7-hectare Parañaque Integrated Terminal Exchange (PITX), and for the Ninoy Aquino International Airport (NAIA) Rehabilitation Project.
“We see significant opportunities in both our organic and external pipeline amid the challenges emerging from the health crisis. We are very thankful to our partners for arranging this facility and gathering together the sources and users of fund, especially in this critical yet exciting stage for the company,” said Edgar Saavedra, Chairman and CEO of Megawide.
Megawide partnered with India-based GMR Airports Ltd. to form GMR -Megawide Cebu Airport Corporation (GMCAC), the consortium that co-operates and co-manages MCIA together with the Department of Transportation’s (DOTr) MCIA Authority (MCIAA).
The same consortium was also recently selected to be lead the NAIA Rehabilitation Project.
READ MORE: MCIA consortium to take over NAIA rehab
Meanwhile, Megawide has submitted an unsolicited proposal to the Cebu City government to redevelop Carbon Public Market as well as the historical Compania Maritima, both in downtown Cebu City.
“We also want to take advantage of this window of opportunity for investors who are searching for attractive investment alternatives and for projects that offer significant value. At the end of the day, we believe that all sectors – the public sector, private companies, and financial institutions – should come together for businesses to recover quickly. After all, we all share the single objective of economic progress and national development as we pursue our vision of a First-World Philippines,” said Saavedra. /dbs
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