NLEX Corp. P25-B shelf registration gets SEC approval

THE Securities and Exchange Commission ( SEC) has approved the application of tollways operator NLEX Corp. to issue up registration program.

In an en banc decision released on Wednesday, the SEC authorized NLEX Corp. to issue P25 billion worth of bonds, to be issued in multiple tranches within a period of three years.

billion with an oversubscription option of up to P2 billion. It is targeted for issuance on June 27, 2018 and will be listed on the Philippine Dealing and Exchange Corp.

The offer bonds may be issued in up to two series with a tenor of seven years for Series A bonds due 2025, and 10 years for Series B due 2028.

The Series A bonds will carry an interest rate per annum of between

B will yield 6.7393 to 7.023 percent annually. Interest payments will be paid every end-quarter of each year for as long as the offer bonds remain outstanding.

BDO Capital and Investment Corp. will serve as the issue manager and bookrunner while also acting as joint lead underwriter along with First Metro Investment Corp.

NLEX said proceeds of the bonds would be used to fund the capital expenditure requirement of the R-10 Section project and for other general corporate purposes.

The R-10 project is a 2.6-kilometer elevated toll road, estimated to cost P6.6 billion, which will extend the C-3 Road exit ramp of Segment 10 to R-10 Road near Port Area in Manila. The

motorists seeking an alternative route

in the area.

Construction of the R-10 project is expected to commence within the second quarter for completion within the next 16 months.

“The remaining portion of the proceeds of the offer bonds shall be used for general corporate purposes, which may include capital expenditures to enhance, upgrade and improve the tollway services and facilities in the NLEX and SCTEX,” the company said.

The proposed bond issue has received a “PRS Aaa” rating from Philippine Ratings Services Corp., indicating they are of the highest quality with minimal credit risk.