Conglomerate Metro Pacific Investments Corp. said it secured P16.5 billion worth of term loan facilities from two banks to finance investments in several projects.
Metro Pacific said in a disclosure to the stock exchange it signed separate agreements with BDO Unibank Inc for 10-year fixed rate notes worth P10 billion and China Banking Corp. for another 10-year fixed rate term loan worth P6.5 billion.
Metro Pacific earlier announced a $10-billion (P480 billion) five-year spending program to further expand its power, water, infrastructure and hospital businesses.
Metro Pacific has earmarked P401 billion for the committed projects on core businesses that include additional tollroads and power plants.
The figure could go up by another P78 billion as the conglomerate explores new projects for its water and tollroad units.
The company said it was keen on other infrastructure projects that the government would bid out under the public-private-partnership scheme.
Out of the P401-billion spending from 2015 to 2020, Metro Pacific has earmarked some P170 billion to the power business, P106 billion to the water utility, which is looking for bulk and wastewater projects in various parts of the country, P65 billion to expand toll road business both here and overseas, and P16 billion to acquire its hospital unit.
Metro Pacific plans fund the bulk of the spending, or at least P219 billion, through cash-flow of existing operations, P129 billion through debt and P53 billion in new equity.
The company said its ability to deliver the five-year programmed spending depended on whether the government would honor its commitment to grant the much-delayed tariff adjustments on its water, tollroad and railway businesses.
Metro Pacific is also considering the possibility of selling a portion of its stake in the hospital, water and toll roads businesses to strategic investments investors or conduct initial public offerings.
Metro Pacific said it plans to keep majority ownership in these companies.
Metro Pacific expects to post P10 billion in core net income this year, up 18 percent from P8.5 billion in 2014, despite the delayed tariff adjustments in water and tollroad businesses.
Metro Pacific chief finance officer David Nicol earlier said the 2015 core net income could have been higher by P2 billion to P12 billion if the tariff rate adjustments were implemented.
Metro Pacific said first-half net income jumped 31 percent to P5.6 billion, while core net income increased 27 percent to P5.9 billion from P4.6 billion year-on-year.
Metro Pacific president Jose Ma. Lim attributed the increase in core net income to strong traffic growth on all tollroads owned Metro Pacific Tollways Corp., increased shareholdings in MPTC and growth in billed volume of Maynilad Water Services Inc.
Lim said a higher stake in Manila Electric Co. and growth in the hospital group also contributed to the company’s core net income.