MPIC borrows P16.5B to fund project
MANILA, Philippines — Metro Pacific Investments Corporation (MPIC) has borrowed P16.5 billion ($349.72 million) from two local banks to finance several projects and corporate investments.
MPIC told the Philippine Stock Exchange (PSE) on Wednesday, December 2 that it entered into separate agreements to secure loan facilities totaling P16.5 billion ($349.72 million).
MPIC said it secured a 10-year fixed-rate term loan of P10 billion ($211.95 million) from BDO Unibank, Incorporated, as well as 10-year fixed-rate term loan of P6.5 billion ($137.72 million) from China Banking Corporation.
"[P]roceeds of which will be used by MPIC to finance its investment in various projects and for other general corporate purposes," MPIC said in a disclosure.
New road, water projects
The infrastructure conglomerate is waiting for the Philippine government's go signal to start with the Swiss challenge on an elevated connector road and bridge project in Cebu.
The Swiss challenge allows MPIC to match the best offer for the project. This is expected for both the Cebu-Cordova Bridge Project and the Connector Road or Metro Expressway Link Project.
MPIC is also pursuing new water projects outside Metro Manila.
MetroPac Water Investments Corporation is eyeing potential bulk water projects across the Philippines.
It is the original proponent for bulk water in Iloilo and the operations and management contractor for a water treatment plant in Cagayan de Oro.
The Manuel Pangilinan-led conglomerate has also earmarked P401 billion ($8.49 billion) for spending from 2015 to 2020.
Of the 5-year capital spending, about P170 billion ($3.60 billion) has been allocated for power business, P106 billion ($2.24 billion) for water utility, P65 billion ($1.38 billion) for toll road deals, and the remaining P16 billion ($338.98 million) for its hospital unit.
Around P129 billion ($2.73 billion) will be sourced through debt and P53 billion ($1.12 billion) through new equity, while the remaining will be funded through cash flow of existing operations.
Aside from tapping the debt market, MPIC said it is also considering the possibility of selling a portion of its stake in hospital, water, and toll road businesses to strategic investments investors or by initial public offering.
Metro Pacific said it intends to keep majority ownership in these companies.
Changes in management
MPIC announced in a separate disclosure to the PSE on Tuesday, December 1 changes in its management.
The conglomerate said Victorico Vargas, president and CEO of Maynilad Water Services, Incorporated, starting next year will handle the business transformation efforts of MPIC's parent firm First Pacific Company (FPC).
"As such, he will head this BTO and, in the first instance and as priority, oversee the transformation-related activities of the PLDT Group, including the organization and human capital requirements of a digital company," the PSE disclosure read.
Metro Pacific Tollways Corporation President and CEO will replace Vargas as Maynilad's new president, CEO, and director.
Rodrigo Franco, president and CEO of MPTC subsidiary Manila North Tollways Corporation, will in turn hold the position of Fernandez.
MPIC also named Roberto Bontia as president and CEO of MPTC unit Tollways Management Corporation, also replacing Fernandez.
"These changes are implemented by the chairman MVP (Manuel V. Pangilinan). We welcome the changes. It's a smooth transition," Fernandez said on the sidelines of an event in Quezon City on Tuesday, December 1.
These changes in the management will be effective starting next year. — Rappler.com