MPTC raising P20 billion bonds to fund big-ticket projects

MANILA, Philippines — Expressway builder Metro Pacific Tollways Corp. (MPTC) is making its return to the bond market to raise up to P20 billion and fund the completion of big-ticket projects.

MPTC yesterday said it is offering to the public P15 billion in fixed-rate bonds, with an oversubscription option of P5 billion, to finance the delivery of ongoing projects.

The bonds will be offered in tenors of three, five and 10 years, providing flexibility for MPTC in paying the interest to investors.

The bonds will be issued at par, with interest calculated on a 30- and 360-day basis and paid quarterly in arrears. The Philippine Rating Services Corp. assigned the offer with the highest score of PRS Aaa with a stable outlook.

The offer will run from Nov. 17 to 21 and will be listed at the Philippine Dealing and Exchange Corp. on Dec. 2.

MPTC president and CEO Gilbert Santa Maria said proceeds from the issuance would finance the completion of the Cavite-Laguna Expressway (CALAX) and Lapu-Lapu Expressway (LLEX).

MPTC expects CALAX to be finished by the first half of 2026 as its final segments have found their contractors in EEI Corp. and CM Pancho Construction Inc.

Moreover, MPTC is co-building another tollway in Cebu, the LLEX, which would bridge Cebu City and the Mactan-Cebu International Airport via the Cebu-Cordova Link Expressway, another project managed by MPTC.

Further, Santa Maria said part of the proceeds would go for the maintenance of the Manila-Cavite Expressway, as it gears up for additional traffic once CALAX fully opens. The two tollways will be connected to improve connectivity to the south of Mega Manila.

MPTC will also direct some of the proceeds to refinance loans. In August, then-MPTC president and CEO Jose Maria Lim said the company owes lenders around P80 billion, and it eyes to bring this down further before entertaining the idea of going public.

“This bond issuance aims to bolster MPTC’s fiscal position while ensuring the capital adequacy to support continued infrastructure investment and operational excellence,” Santa Maria said.

The issuance will be managed jointly by BPI Capital Corp. and First Metro Investment Corp. MPTC tapped BDO Capital and Investment Corp., China Bank Capital Corp. PNB Capital and Investment Corp. and Security Bank Capital Investment Corp. as joint lead underwriters.