NLEX eyes up to P6 billion bond issue

MANILA, Philippines — NLEX Corp. is planning to issue up to P6 billion in fixed rate bonds this year to refinance its maturing debt.

“We are planning to launch an initial tranche of maybe up to P6 billion,” NLEX Corp. president and chief executive officer Rodrigo Franco said.

The planned issuance is part of the P25 billion in fixed rate bonds that the company’s board approved earlier this year.

NLEX earlier said bonds, which will be registered with the Securities and Exchange Commission, may be issued in one or more tranches within the shelf period under the terms and conditions as may be determined by the government.

Franco said the company may issue the first tranche of the bonds “anytime soon.”

He added that proceeds would be used to finance the company’s maturing debt.

Franco said proceeds of the future fund raising activity may be used for the North Luzon Expressway (NLEX)-South Luzon Expressway(SLEX) connector road project.

The eight-kilometer elevated four-lane toll expressway extends from the NLEX southward from the end of Segment 10 in C3 Road Caloocan City to PUP Sta. Mesa, Manila and connecting to the Skyway Stage 3, and mostly traversing the PNR rail track. The project includes two interchanges located at C3 Road, Caloocan and España, Manila.

Construction of the C3 in Caloocan City to Sta Mesa in Manila portion of the project is set to start this year.

Last week, NLEX Corp. opened two new Pampanga interchanges in the NLEX-Subic-Clark-Tarlac Expressway (SCTEX).