MPIC raises from stock, debt issues
Metro Pacific Investments Corporation, the leading infrastr ucture investment management and holding company in the Philippines, has raised R18.88 billion from a top up placement of new shares and new debt to fund its projects in the country.
In a disclosure to the Philippine Stock Exchange, MPIC said it sold 1.812 billion new shares at R4.90 each in a placement managed by UBS AG, Hong Kong. The placement price is at a discount of 2.75 percent to MPIC’s 30-day volume weighted average share price as of February 9, 2015.
The placement was conducted overnight and garnered strong interest from institutional investors in Asia especially within the Philippines, as well as Europe and the US.
MPIC’s major shareholder, Metro Pacific Holdings, Inc. (MPHI) consequently saw its economic interest in MPIC reduced from 55.8 percent to 52.13 percent.
According to MPIC president Jose Ma. K. Lim, “we are also in the process of raising R10 billion of new borrowings at MPIC. Our overall objectives are supporting expansion and reducing our relatively high cost debt in our affiliate, Beacon Electric Asset Holdings; this will enhance the cash flow at MPIC itself.”
MPIC will use the net proceeds from the placement, together with up to R10 billion from new borrowings, for reduction of relatively expensive debt at MPIC’s affiliate, Beacon Electric Asset Holdings, Inc. (Beacon), investment in previously announced projects and general corporate purposes.
The firm also confirmed that its subsidiary, Manila North Tollways Corporation, received notice of award regarding the Subic Clark-Tarlac Expressway (SCTEX). The SCTEX is a 94kilometer-long road with 31,000 vehicle entries per day with traffic growth for 2014 estimated at 12 percent year- on-year.
“With recent developments in our new investment in Vietnam, accelerating progress in the Philippines in our roads, specifically the SCTEX, together with rail and further PPP opportunities ahead of us we decided now was the time to embark on an equity raising,” said Lim.