By Ashley Erika O. Jose, Reporter
METRO PACIFIC Tollways Corp. (MPTC) is targeting to raise up to P20 billion through a bond issuance to fund ongoing tollway projects and refinance existing loan facilities.
In a statement on Monday, the tollways arm of Metro Pacific Investments Corp. (MPIC) said it filed a registration statement with the Securities and Exchange Commission (SEC) for the proposed offering, which will consist of P15 billion in fixed-rate bonds, with an oversubscription option of up to P5 billion.
These will be issued in up to three series with tenors of three, five, and 10 years.
“This bond issuance aims to bolster MPTC’s fiscal position while ensuring capital adequacy to support continued infrastructure investment and operational excellence,” MPTC President and Chief Executive Officer Gilbert F. Santa Maria said.
Net proceeds from the offer will be used to partially finance equity or advances for the Manila-Cavite Expressway (CAVITEX), Cavite-Laguna Expressway (CALAX), and Lapu-Lapu Expressway (LLEX), as well as refinance bridge loan facilities and fund other general corporate purposes.
Net proceeds after fees and expenses are expected to reach around P14.8 billion, or up to P19.7 billion if the oversubscription option is fully exercised, based on the preliminary prospectus.
“We think MPTC’s offering will attract healthy investor demand. They’re a leading infrastructure company with strong debt service capacity, plus there is plenty of liquidity in the local corporate bond market,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.
The bonds are intended to be issued at par, with interest computed on a 30/360-day count basis and paid quarterly.
The offer period is targeted to run from Nov. 17 to 21, while the bonds are expected to be issued and listed on the Philippine Dealing and Exchange Corp. (PDEx) on Dec. 2.
BPI Capital Corp. and First Metro Investment Corp. are the joint issue managers for the offer, while BDO Capital & Investment Corp., China Bank Capital Corp., PNB Capital and Investment Corp., and Security Bank Capital Investment Corp. are joint lead underwriters and joint bookrunners.
The bonds have been assigned a credit rating of PRS Aaa with a stable outlook by Philippine Rating Services Corp. (PhilRatings), the highest rating assigned by the credit watcher.
PhilRatings said the rating reflects MPTC’s growing regional footprint and project pipeline, as well as its sustained growth and increasing earnings.
“Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong,” it said.
MPTC is the tollways unit of MPIC, one of the three key Philippine subsidiaries of Hong Kong-based First Pacific Co. Ltd., along with Philex Mining Corp. and PLDT Inc.
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