MPIC signs P8-B loan facility
MANILA, Philippines — Metro Pacific Investments Corp. (MPIC) has signed a syndicated term loan facility amounting to P8 billion.
Proceeds of the 10-year and 15-year loan will be used for debt refinancing, MPIC said in a disclosure to the Philippine Stock Exchange yesterday.
Specifically, MPIC said proceeds would be used to partially finance the redemption of the outstanding debt obligations of Beacon Electric Asset Holdings and for other general corporate purposes.
Beacon is a special purpose vehicle under the MVP Group. Last June, PLDT sold its remaining stake in Beacon to MPIC for P21.8 billion.
MPIC has tapped BDO Capital & Investment Corp. as arranger and bookrunner.
Last December, MPIC secured P10 billion worth of loans from two local banks to fund various projects.
For this year, MPIC has set aside P100 billion for capital spending, higher than the P94 billion programmed last year. The amount is broken down as follows: P38 billion for toll roads, P21 billion for Manila Electric Co., P17 billion for Light Rail Manila Corp., P12 billion for Maynilad and P6 billion each for logistics and hospital operations.
Over the next five years, the conglomerate is looking to develop P653 billion worth of infrastructure projects as it hitches a ride on the Duterte administration’s Build Build Build program.
MPIC will fund its capex through a combination of debt and equity.
Of the amount, power projects will get the largest share at P380 billion, followed by toll roads (P125 billion) and rail (P70 billion).
MPIC is also pursuing other prospective projects on biogas, logistics and other similar developments worth another P167 billion.
If these prospective projects push through, MPIC’s capital spending will increase to P820 billion.
MPIC also joined a super consortium of seven conglomerates, which plans to submit an unsolicited proposal to develop the Ninoy Aquino International Airport (NAIA).
Aside from MPIC, other conglomerates in the consortium are Alliance Global Inc., JG Summit, Filinvest Land Inc. , Aboitiz Equity Ventures and LT Group.
MPIC’s businesses are tollways, hospitals, water, power and rails, among others.