MNTC signs P10.6-B financing agreement

MANILA, Philippines - Manila North Tollways Corp. (MNTC), the operator of the North Luzon Expressway (NLEX), has signed a P10.6-billion financing deal with major creditors to refinance its debts and expand its toll road network.

 “The financing transactions mark MNTC’s full transition from its project-finance origins to standard corporate finance terms,” MNTC president Rodrigo Franco said.

He explained that the transaction involved the issuance of P6.2 billion worth of new five, seven and 10-year corporate notes and the restructuring of P2.3 billion in existing corporate notes and P2.1 billion bilateral term loan.

BDO Capital & Investment Corp., BPI Capital Corp. and PNB Capital & Investment Corp. were the joint lead arrangers of the transaction.

Franco said MNTC is still open to raising another P6.5 billion this year to finance this year’s and next year’s expenses for the Harbour Link project set for construction later this year.

 “We’ll be opportunistic. If the environment is good, we can prefund as an option. If there is an opportunity, we might prefund within the year,” he said, adding that the same creditors have already expressed their interest to support the next borrowing.

He added going back to the local stock market for additional equity is always an option for MNTC to raise additional funding for its expansion projects.

Still, Franco said fund-raising plans are contingent with the rollout of its projects which include Segments 9 and 20 or the westward extension of NLEX to McArthur Highway and Circumferential Road 3. The expressway connection of NLEX to Manila Harbor areas is estimated to cost P8 billion.

 “We need P1.5 billion for that project this year and possibly, another P5 billion next year,” he said.