Megawide consortium borrows P2.9B to modernize PH Orthopedic

Rappler.com

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Megawide consortium borrows P2.9B to modernize PH Orthopedic
The consortium is still working on another P1-billion loan for the long-term lease of hospital equipment

MANILA, PHILIPPINES – A Megawide Construction Corporation-led consortium will borrow up to P3.9 billion ($64.52 million*) to partially finance the P5.7-billion ($126.77 million) modernization of the Philippine Orthopedic Center in Quezon City.

Megawide World Citi Consortium, Incorporated has already entered into a P2.9 billion ($64.52 million) omnibus loan and security agreement with the Land Bank of the Philippines, Land Bank of the Philippines – Trust Banking Group and the Development Bank of the Philippines, Megawide chief finance officer Oliver Tan said in an interview Friday, October 3. Megawide acted as the guarantor.

The project involves the construction, operation, and maintenance of a new 700-bed facility within the National Kidney Transplant Institute compound along East Avenue in Quezon City. The new hospital building is slated for completion by the first quarter of 2017.

The 68-year-old Philippine Orthopedic Hospital is currently located at Maria Clara corner Banawe streets in Quezon City. Only 300 out of the 700 beds of hospital are usable because of its current poor condition.

The debt will have a term of 12-years and the rates will be set upon the drawdown. The consortium is still working on another P1 billion ($22.27 million) worth of borrowings for the long-term lease of hospital equipment.

The consortium won the hospital modernization project under the public-private partnership (PPP) deal.

The consortium can finance up to 70% of the project cost through borrowings and the remaining 30% through equity.

Megawide is also planning to complete the issuance of P10-billion ($222.86 million) worth of preferred shares in November.

Megawide applied with the Securities and Exchange Commission to issue 40 million of preferred shares and an additional 30 million in preferred for over alloment at an offer price of P100 ($2.23) per share.

BPI Capital Corporation and Standard Chartered Bank were tapped as underwriters for the offering.

Proceeds from the sale share will be used to finance Megawide’s infrastructure projects: the P17.5-billion ($389.93 million) Mactan-Cebu International Airport; two schools projects; and the Philippine Orthopedic Center. Rappler.com

*$1 = P44.88

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