NLEx plans P6-billion bond issuance
NLEX CORP. is planning to issue up to P6 billion in fixed-rate peso-denominated bonds, with the proceeds to be used to refinance debt.
“We have initial tranche that we are planning to launch — P6 billion or maybe P4-6 billion, that will be the initial issuance. Anytime, we can start soon. It will be used mainly for debt refinancing of P4 billion maturing debt,” NLEX Corp. President and CEO Rodrigo E. Franco told reporters on Feb. 26.
Last Feb. 14, the unit of Metro Pacific Tollways Corp.(MPTC) said its board approved the shelf registration, public offer, and insurance of fixed rate peso bonds up to P25 billion. NLEX Corp. said the bonds may be issued in one or more tranches within the shelf period.
After the initial tranche, Mr. Franco said the company will issue bonds when it needs funds for its projects.
“After that, the connector (NLEX-SLEX Connector Project) starts already. We have to time it with the requirement of the project, that’s why we have a shelf registration. We don’t want to issue too early,” he said.
NLEX Corp. is allotting P19 billion for 2018, primarily for the construction of Harbor Link Segment 10 and the North Luzon Expressway (Nlex)-south Luzon Expressway (Slex) Connector Road project.
The Harbor Link Segment 10 is a 5.7-km. elevated expressway traversing NLEX from Smart Connect Interchange and crossover McArthur Highway in Valenzuela City, with down ramps along C-3/5th Avenue Interchange in Caloocan City.
The NLEX-SLEX Connector Road Project is an 8-km. all-elevated public-private partnership project of the Department of Public Works and Highways. The connector road will be built above the existing Philippine National Railways tracks from the C-3/5th Avenue Interchange in Caloocan City to Polytechnic University of the Philippines in Sta. Mesa, Manila.
MPTC is part of Metro Pacific Investments Corp. (MPIC), which is one of three key 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 Media Quest Holdings, Inc., has a majority stake in through the Philippine Star Group, which it controls. —