MPTC raises P20B in bond sale to manage debt, fund projects

By Ashley Erika O. Jose, Reporter

METRO PACIFIC Tollways Corp. (MPTC) raised P20 billion from a fixed-rate bond sale to finance infrastructure projects and manage its ballooning debt.

“These bonds carry the credit rating [of PRS Aaa with a stable outlook] by PhilRatings (Philippine Rating Services Corp.), underscoring our commitment for consistent financial discipline… We remain committed to supporting the country’s economic growth,” MPTC President and Chief Executive Officer Gilbert F. Santa Maria said during the bond listing ceremony on Tuesday.

MPTC’s P15-billion fixed-rate bonds were oversubscribed by P5 billion. The offering was led by BPI Capital Corp. and First Metro Investment Corp. as joint issue managers, with BDO Capital & Investment Corp., China Bank Capital Corp., PNB Capital and Investment Corp., and Security Bank Capital Investment Corp. acting as joint lead underwriters and bookrunners.

The offer period ran from Nov. 17 to 21, with the bonds issued and listed on the Philippine Dealing and Exchange Corp. (PDEx) on Tuesday, Dec. 2.

MPTC, the tollways arm of Metro Pacific Investments Corp. (MPIC), is working to reduce its P200-billion net debt, the company said.

It also said that it intends to allocate net proceeds from the offering to partially finance investments in the construction and maintenance of the Manila-Cavite Expressway, Cavite-Laguna Expressway (CALAX), and Lapu-Lapu Expressway (LLEX), as well as to refinance bridge facilities and support other corporate purposes.

“When we acquired toll roads in Indonesia, we took loans. This one is supposed to extend the maturity of [MPTC’s] loans. This is part of the debt management program; [MPTC’s] net debt is around P200 billion,” MPIC Chief Finance, Risk, and Sustainability Officer Chaye Cabal-Revilla told reporters on the sidelines of the event.

She added that MPTC took loans for its $1-billion investment cooperation to acquire a 35% stake in PT Jasamarga Transjawa Tol (JTT), a major toll road operator in Indonesia.

“This bond deal was a way of reintroducing MPTC to the public capital markets, and the success of the offering bodes well for a future IPO,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

The bond sale is also expected to improve the company’s debt maturity profile and business prospects, he noted, saying this would support any merger plans or potential initial public offering (IPO) discussions.

“Many investors who bought the bonds appreciate the defensive nature of the tollways business, and we think the same narrative will drive positive sentiment toward the IPO,” Mr. Colet added.

For Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce, MPTC’s P20-billion fixed-rate bond issuance strengthens the company’s balance sheet and is strategic as it paves the way for a potential merger with San Miguel Corp.’s toll road business.

“By refinancing short-term or bridge debt with long-tenor fixed-rate bonds, MPTC reduces refinancing risk, extends its maturity profile, and projects a cleaner, more stable financial position — all of which are essential for any large-scale corporate combination,” he said.

For Mr. Santa Maria, the company’s top priority is reducing debt while raising funds to complete ongoing projects.

“The plan to merge with San Miguel is far in the future. It is not immediately forthcoming… The debt is what we need to deal with. We have to raise money to pay down debt, extend maturities, finish CALAX, and get Lapu-Lapu Expressway started,” he said.

Last month, MPIC said it was revisiting plans to divest up to a 30% stake in MPTC to help reduce net debt.

The company previously said it aims to complete CALAX by 2026, while phase 1 of the Lapu-Lapu Expressway is expected to be finished by the fourth quarter of 2027.

MPTC is the tollways unit of MPIC, one of three key Philippine subsidiaries of Hong Kong-based First Pacific Co. Ltd., along with Philex Mining Corp. and PLDT Inc.

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