The local infrastructure holding firm of business magnate Manuel Pangilinan has secured a P6.5-billion long-term loan from BDO Unibank Inc. to refinance its existing debt.
Metro Pacific Investments Corp. (MPIC) disclosed through a corporate filing at the Philippine Stock Exchange that it has secured a 10-year term loan of P6.5 billion from BDO, with the loan to be drawn by the company on or about Wednesday next week.
The loan proceeds, according to the conglomerate, will be used to refinance its existing debt.
The loan will bear a fixed interest rate which will be the same rate for the first five years of the term of the loan and which will be repriced on the fifth year, with the adjusted interest rate applicable to the next five years of the term of the loan.
To raise funds for its infrastructure projects in the country, MPIC also completed a P6.12-billion equity placement earlier this year.
“We are beginning to see some momentum in the government’s PPP [private public partnership]initiative,” Pangilinan said earlier.
“Bidding processes including prequalification requirements are already running for LRT [Light Rail Transit] 1 and Cebu-Mactan airport [terminal project], and we believe government will soon commence bidding on the Cala [Cavite-Laguna] Expressway. MPIC is now well placed to participate in these projects and other infrastructure expansion,” he added.
The equity placement, which was managed by CLSA Ltd. and UBS AG, involved 1.33 billion shares priced and sold at P4.60 apiece.
The group further said that it will invest the proceeds of the share placement primarily in its water, roads and hospitals businesses as well as in supporting bids for new business undertaking such as light rail and airports.