MNTC offers retail bonds to raise funds for NLEX project

North Luzon Expressway. INQUIRER FILE PHOTO

MANILA, Philippines — North Luzon Expressway Manila North Tollways Corp. debuted on the local bond market on Wednesday with a retail bond offering of up to P7 billion, making history as the first unlisted local company to tap the local bond market.

In a press briefing on Wednesday, Metro Pacific Tollways Corp. chief finance officer Christopher Lizo said the bonds with tenor of seven years were priced to yield 5.07 percent per annum while the 10-year bonds would carry 5.5 percent per annum.

MNTC is a wholly owned unit of MPTC, which is in turn a core operating unit of infrastructure holding firm Metro Pacific Investments Corp.

Lizo said the issuance has been met with strong demand from the domestic market and that this bond debut has been oversubscribed by 2.3 times the base offer.

The bonds will be listed on local fixed income trading platform Philippine Dealing & Exchange Corp. by April 31, 2014.

BDO Capital is the lead underwriter while co-lead underwriters are First Metro Investment Corp., PNB Capital and SB Capital, according to Lizo.

Of the total issuance, Lizo said MNTC would source P4.4 billion from the seven-year tenor and P2.6 billion from the 10-year tenor.

MNTC is raising fresh funds for the construction of the North Luzon Expressway-Segment 10 that will link up MacArthur Highway in Valenzuela City to C-3 Road in Caloocan City.

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