Metro Pacific Tollways Corp. (MPTC) plans to raise up to P45 billion to refinance its debt obligations.
The company is in discussions with local and foreign banks to secure the financing, according to MPTC president and chief executive Rogelio Singson.
Singson said the company was looking at reducing its debt level, which stands at around P145 billion to P150 billion. He said MPTC was also exploring the possibility of an initial public offering (IPO) or bringing in strategic investors.
“The general outlook is we need to raise money to reduce our debt level. Our level is about P145 billion to P150 billion, but as we finished [the project] and revenues coming, we’re able to pay off,” Singson said.
“That is why we are looking at IPO [initial public offering] or [having] strategic investors,” he said.
Singson said the fundraising would be held before the 2025 IPO target. He said the company was already talking with local and foreign banks.
The planned IPO, initially targeted for the third quarter of 2023, was delayed to 2025 due to a possible merger with San Miguel’s expressway business.
MPTC and San Miguel signed a P72-billion deal in August to construct two expressways south of Metro Manila. The Cavite-Batangas Expressway and the Nasugbu-Bauan Expressway will have a total length of 87.96 kilometers.
MPTC operates 105 kilometers of North Luzon Expressway, 94 kilometers of Subic Clark-Tarlac Expressway and 14 kilometers of Manila-Cavite Expressway. It also operates 8.5 kilometers of Cebu-Cordova Link Expressway in Cebu.
SMC’s expressways include the Tarlac-Pangasinan-La Union Expressway (TPLEX), the Southern Tagalog Arterial Road (STAR), South Luzon Expressway (SLEX), the Skyway System and the NAIA Expressway (NAIAX).