MPIC unit to tap bond market
A tollroad unit of Metro Pacific Investments Corp. is planning to raise additional funds to pay for its upcoming projects.
The company said in a stock exchange filing on Friday that it intended to tap the bond market to raise up to P25 billion over several tranches. The amount was filed with the Securities and Exchange Commission under the so-called shelf registration for three years. It plans to initially raise P6 billion out of the P25 billion.
Philippine Rating Services Corp. (PhilRatings) noted separately on Friday that it had assigned the highest issue credit rating of PRS Aaa, with a stable outlook, for the initial tranche.
PhilRatings likewise maintained the issue credit rating of PRS Aaa for the company’s outstanding bonds worth P7 billion. The bonds are due in two tranches: P4.4 billion maturing in 2021 and P2.6 billion due in 2024.
“The ratings and outlook reflects NLEX Corp.’s maintenance of ample cash flows and buffer in terms of operating margins to comfortably service debt obligations and be financially flexible against external shocks,” PhilRatings said.
“It also factored in the firm’s adequate capital structure that is expected to further improve over time as retained earnings beef up the company’s equity position; its well-managed toll franchise and the resilient demand for toll service,” it added.
NLEx Corp. signed last November a concession agreement with the Department of Public Works and Highways to finance, design, construct, operate and maintain the North Luzon Expressway-South Luzon Expressway connector road Project. It is an 8-kilometer elevated expressway from the terminal of Segment 10 at C-3 Road up to the SLEx.
The project will cost P17.6 billion and is expected to be operational by the first quarter of 2021. Construction will commence in the third quarter of 2018. NLEx Corp. operates the NLEx and Subic-Clark-Tarlac Expressway.—MIGUEL R. CAMUS
