Metro Pacific Tollways Corp. (MPTC) is in negotiations with a syndicate of local and foreign banks to raise at least P45 billion as part of a larger plan to reduce its debt.
According to Rogelio Singson, MPTC president and chief executive, the general outlook relates to the need to raise money to reduce debt of some P145 billion or P150 billion. He notes that as MPTC completes its projects, it hen has the revenue to pay off the obligation.
Singson said the plan is to raise 30 percent of outstanding obligations of P150 billion or between P40 billion and P45 billion.
“That is why we are (also) looking at an initial public offering” to generate capital funds from strategic investors, he added.
Singson said the fundraising will be done before the 2025 IPO target date, saying the company has already talked with local and foreign banks.
MPTC’s planned IPO in the third quarter of the year would be delayed until 2025 because of the possible merger with San Miguel Corp.’s expressway business.
Manuel V. Pangilinan, MPIC chairman, earlier thought of a joint venture company with San Miguel for the expressway business that will eventually list at the Philippine Stock Exchange.
MPTC and SMC signed in August this year a P72-billion deal to construct two expressways south of Metro Manila.
Under the memorandum of agreement, MPTC and SMC will jointly undertake the construction, operation and maintenance of the 87.96-kilometer Cavite-Batangas Expressway and Nasugbu-Bauan Expressway.
MPTC operates the 105-kilometer North Luzon Expressway, the 94-kilometer Subic Clark-Tarlac Expressway and the 14-kilometer Manila-Cavite Expressway. It also operates the 8.5-kilometer Cebu-Cordova Link Expressway in Cebu.
SMC’s expressways include the Tarlac-Pangasinan-La Union Expressway (TPLEX), the Southern Tagalog Arterial Road (STAR), South Luzon Expressway (SLEX), the Skyway System and the NAIA Expressway (NAIAX).
