The Securities and Exchange Commission approved the P25-billion bond shelf registration of NLEX Corp., the builder-concessionaire, and operator of two major expressways in Central Luzon.
Data from the SEC showed NLEX would initially issue P4 billion with an oversubscription of P2 billion. The bonds will have tenors of seven years with an indicate interest rate of 6.46 percent to 6.76 percent, and 10 years, with an indicative annual yield of 6.7393 percent to 7.7023 percent.
NLEX will issue and list the bonds with Philippine Dealing & Exchange Corp. on June 27.
The toll road company tapped BDO Capital and Investments Corp and First Metro Investments Corp. as underwriters of the bond offering.
The company plans to use the net proceeds from the bond offering to finance the company’s 2018 capital expenditure, which may include the upgrade of tollway services and facilities in North Luzon Expressway and Subic-Clark-Tarlac Expressway.
The company will spend for the construction of the R-10 section project, a 2.6-kilometer toll road extending the C-3 road exit ramp of Segment 10 to R-10 Road near the Port Area.
The project, which estimated to cost P6.6 billion, will provide an alternative route to motorists who suffer from the worsening traffic congestion in the Port Area.
The tollroad firm earlier budgeted P19 billion in capital expenditures for the year for the construction of new expressway projects to help solve Metro Manila’s traffic bottlenecks.
The tollway company said the planned investment, however, assumed the satisfactory resolution of the tariff adjustments.
The company this year is scheduled to open Harbor Link Segment 10, a 5.7-kilometer elevated expressway traversing NLEx from Smart Connect Interchange and cross over MacArthur Highway in Valenzuela City with down ramps along C3/5th Avenue Interchange in Caloocan City.
When Harbor Link is fully completed, travel between the Ports of Manila and NLEx is expected to take only 10 minutes, providing direct expressway access for commercial vehicles, especially heavy trucks.