NLEX Corp., a unit of Metro Pacific Tollways Corp. successfully raised P6 billion from 7- and 10-year bonds, the underwriter handling the deal said Monday.
BDO Capital and Investments Corp. president Eduardo Francisco noted a strong demand in the offering that prompted NLEX to exercise the oversubscription option.
NLEX issued P6 billion worth of fixed rate bonds under a P25-billion bond shelf registration program.
The Series A bonds due 2025 carry an interest rate of 6.6407 a year, while the Series B bonds due 2028 offer an annual yield of 6.9 percent.
NLEX plans to use the proceeds from the bond issue to partially fund the construction of the R-10 Section Project.
The R-10 Section Project is a 2.6-km elevated toll road that will extend the C-3 Road exit ramp of Segment 10 to R-10 Road near the Port Area, providing an alternative route to motorists who suffer from the worsening traffic congestion in the Port Area.
The R-10 Section Project, which is estimated to cost ₱6.6 billion, is scheduled to be completed in 16 months after the start of construction.
BDO Capital and First Metro Investments Corp. are the joint underwriters of the transaction. The bonds will be listed with Philippine Dealing & Exchange Corp. on July 4.
NLEX Corp., formerly known as Manila North Tollways Corp., operates the North Luzon Express Expressway and the Subic-Clark-Tarlac Expressway.
The NLEx spans approximately 95 kilometers and serves an average of 237,046 vehicles a day.
SCTEx, meanwhile, is a 94-km expressway stretching from Subic-Tipo to La Paz, Tarlac, connecting the special economic zones in Subic and Clark and Olongapo City to Tarlac City.
The company said it would explore opportunities to expand the NLEx footprint either by acquiring existing concessions or obtaining rights to new concessions for toll road projects, especially those connecting to the NLEx or SCTEx.
“NLEX Corp believes that any new connection to the NLEx-SCTEx network will generate additional travel demand as well as cost savings in terms of economies of scale,” the company said.
