MPIC eyes P30-B bond issue next yr


SYDNEY, Australia: PANGILINAN-led Metro Pacific Investments Corp. (MPIC) plans to tap the fixed-income market next year to raise as much as P30 billion to fund the projects of subsidiaries.

MPIC earlier announced it was looking at a capital expenditure of P653 billion over the next five years.

“Overall then, we’re going to find P653 billion over the next few years. Some of that will come from equity partners, approximately P90 billion [will]come from MPIC, some of it [will come]from project financing,” Nicol told a news briefing.

“And then…next year, we will make a bond issue….Next year, MPIC’s funding commitment is P30 billion to put into its subsidiaries,” he noted.

“We have the deadlines available for that but I think the minimum—we would do shelf registration of about P30 billion to get us flexibility but I think we’re looking to draw more than P10 billion of that next year,” he added.

Earlier this week, the official said that over the next five years, MPIC would be pouring in P125 billion for the committed projects of its toll roads unit, P70 billion for its light rail unit for maintenance upgrade, P45 billion for its water unit to increase water supply, P20 billion for energy-to-waste investment, P13 billion for its hospitals arm, and P380 billion for its power subsidiary.

“We have a triple-A rating and then we can issue bonds … so it’s time we start raising funds from the capital market,” Nicol said.

Apart from the committed projects, MPIC is also seeking to enter prospective investments in biogas, logistics, and toll roads worth another P167 billion, on top of the P653 billion five-year expenditure program.

For 2018, the conglomerate has set a P100 billion capital spending, higher by 26 percent than the P79 billion allotted this year, as it seeks to take advantage of the government’s infrastructure development program.

MPIC is the conglomerate led by businessman Manuel V. Pangilinan.


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