Metro Pacific toll unit eyes P7-B offer

Manila North Tollways Corp., the private operator of 84-kilometer North Luzon Expressway (Nlex), plans to hold a P7-billion debt offering in the first quarter of 2014 to finance the extension of Nlex to Manila’s Port Area.

Christopher Lizo, chief financial officer of Metro Pacific Tollways Corp., the controlling stockholder of MNTC, said the fundraising could take the form of retail bonds.

MNTC is still deciding on the company that will underwrite the deal, which is part of a P10-billion borrowing plan, he said.

MNTC has so far secured P1 billion through a bilateral loan, Lizo said. The company also hopes to raise another P2 billion before the end of 2013.

The plan will depend “on when we think the government will give the right of way. If not, there is a negative carry if we borrow earlier,” he said.

The plan to extend Nlex to the Port Area is divided into two phases.

The first section calls for the extension of the expressway to MacArthur Highway. The actual extension all the way to the Port Area will be undertaken in the second phase.

The company expects to start the second phase, or segment 10, in 2014. Metro Pacific Tollways’ capital spending budget is estimated at P6 billion next year, Lizo said.

Metro Pacific Tollways is on track to hit its P8-billion revenue goal for 2013, Lizo said.

The company said contributions from Manila Cavite Expressway (Cavitex), a 14-kilometer expressway operating in the southern part of Metro Manila, helped offset delays to the awarding of the Subic-Clark-Tarlac Expressway (SCTEX).

The company won the bid to operate the 94-km SCTEX under the previous administration but the contract has yet to be formally awarded to MNTC.