METRO PACIFIC Tollways Corp. (MPTC) wants to approach local and foreign banks to raise fresh funds after putting its planned initial public offering (IPO) on hold, its top official said.
“The general outlook is that we need to raise money to reduce our debt levels. The problem is that our debt level is huge – we have the highest level in MPIC, even higher than Meralco (Manila Electric Co.),” MPTC President and CEO Rogelio L. Singson told reporters on the sidelines of a forum last week.
MPTC, the toll road division of Pangilinan-led Metro Pacific Investments Corp. (MPIC), previously announced that it would delay its initial public offering to 2025 as the company exercises its options under a plan to form a joint venture company with San Miguel Corp. (SMC) checks. .
MPIC had previously announced that it plans to list MPTC after it was delisted from the Philippine Stock Exchange in October.
The joint venture company with SMC to build expressways could be the candidate for listing on the Philippine Stock Exchange.
“Our (debt) level is around P145 billion to P150 billion, but when we finish with the revenue, we can pay off. That’s why we are looking for IPOs or strategic investors,” Mr Singson said.
As the company postpones its planned initial public offering to 2025, the company is considering reaching out to foreign and local banks, Mr. Singson said, adding that it needs to raise about 30% of its debt, or between P40 billion and P45 billion.
Asked whether MPTC is considering a bond issue, Mr Singson said: “In what form, I don't know yet, but we need to raise funds to offset our debt levels before the IPO.”
“We have to reserve a portion for the IPO. If we need to raise P45 billion, half of it will come from strategic investors and the other half will come from the IPO. We want the public to participate,” he added.
MPTC is the tolling unit of MPIC, one of the three main Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through its controlled Philippine Star Group. – AEO Jose
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