SUMMARY
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MANILA, Philippines – The Manila North Tollways Corporation (MNTC) filed an application to the Securities and Exchange Commission (SEC) to issue P7 billion worth of bonds to fund its tollway projects, making it the first non-listed company to issue bonds.
The bonds will be registered with the Philippine Dealing and Exchange Corp. According to the documents filed, MNTC will issue bonds with 7 and 10-year tenors.
BDO Capital and Investments Corp is the issue manager while First Metro Investments Corp, PNB Capital SB Capital, and BDO Capital are joint issue managers.
MNTC will use the net proceeds of the offer to partially fund the 5.65 kilometer segment 10 of the North Luzon Expressway (NLEX). This will connect MacArthur highway in Valenzuela City to C-3 road in Caloocan City.
Segment 10 is part of the P23 billion project that aims to connect NLEX and the South Luzon Expressway (SLEX). Construction will start within the first half of 2014. Segment 10 is expected to be operational by 2016. (READ: MPIC eyes to complete 3 toll roads before JUne 2016)
Joint venture
The transportation, public works, finance and justice departments earlier agreed to extend the concession agreement between state-owned Philippine National Construction Corporation (PNCC) and Metro Pacific Investments Corporation (MPIC) to the connector road project through the creation of a new joint venture to hasten the construction of the project.
On January 2014, MNTC signed the joint venture agreement with PNCC – the company that holds the franchise to run the expressway – for the project implementation.
MPIC, a majority shareholder of MNTC and the parent company of Metro Pacific Tollways, proposed the construction of the 13 kilometer connector road for P22.92 billion.
In 2013, MNTC posted operating revenues of P7.1 billion, which is 4.7% more from P6.78 billion. Its net income totaled to P2.37 billion, 20% more than 2012’s P1.96 billion.
MNTC will be the fourth company to issue bonds in 2014, next to Philippine Long Distance Telephone Company, ABS-CBN Corp, and JG Summit Holdings Inc. – Rappler.com
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