By James A. Loyola
Metro Pacific Investments Corporation and its infrastructure subsidiaries have secured loans worth a total of P68.2 billion to fund its various tollway projects as well as other investments.
In a disclosure to the Philippine Stock Exchange, MPIC said indirect subsidiary Cebu Cordova Link Expressway Corporation (CCLEC) has signed an Omnibus Loan and Security Agreement covering a P19.0 billion 15-year term loan facility provided by various banks.
The loan is secured by a pledge over CCLEC shares and a security interest over certain assets of CCLEC.
Proceeds of the loan will be used by CCLEC to fund the construction costs and other project costs of its toll road facility linking Cebu and Cordova with a cable-stayed bridge as part of the facility.
The toll road facility will be utilizing an open system once it starts commercial operations sometime in 2021.
Another indirect subsidiary MPCALA Holdings, Inc. (MPCALA) has signed an Omnibus Loan and Security Agreement covering a P24.2 billion 15-year term loan facility provided by various banks.
The loan is secured by a pledge over MPCALA shares and a security interest over certain assets of MPCALA.
Proceeds of the loan will be used by MPCALA to fund project costs for its Cavite-Laguna Expressway Project, a closed-system tolled expressway connecting the Manila-Cavite Expressway and the South Luzon Expressway.
MPIC has also signed a P20 billion 10-year syndicated term loan facility to fund capital expenditures and for other general corporate purposes.
The firm engaged BDO Capital & Investment Corporation and BPI Capital Corporation as arrangers and book runners.
MPIC had also secured a 10-year term loan of P5 billion from Union Bank of the Philippines to finance its investment in various projects and for other general corporate purposes. The loan will bear a fixed interest rate for the entire term of the loan.