Metro Pacific Tollways Corp. (MPTC) plans to raise up to ₱20 billion through a planned bond issuance, while continuing to explore options to reduce debt, as market conditions are still not favorable for an initial public offering.

Philippine Rating Services Corp. (PhilRatings) said MPTC is planning a bond issue of ₱15.0 billion, with an Oversubscription Option of up to ₱5 billion.

The planned bond offering has been assigned PhilRatings’ highest Issue Credit Rating of PRS Aaa, with a Stable Outlook. Obligations rated PRS Aaa are of the highest quality with minimal credit risk, and the obligor’s capacity to meet its financial commitment on the obligation is extremely strong.

A Stable Outlook, on the other hand, indicates that the assigned rating is likely to be maintained or to remain unchanged in the next 12 months.

In assigning the rating and corresponding outlook, PhilRatings noted that it took into account major rating factors, including MPTC's status as a well-managed tollway developer and operator with a growing regional footprint and project pipeline.

It also took into consideration MPTC’s sustained growth, backed by strong demand; the company’s robust and steadily increasing earnings; its healthy cash flows, supported by consistently positive operating cash; and the anticipated easing of its leverage levels, reversing the uptrend seen in previous years.

Manuel V. Pangilinan, chairman of MPTC’s parent company Metro Pacific Investments Corp., has said earlier this year that they are considering various options to reduce MPTC’s debts (about ₱80 billion), including the offering of perpetual preferred shares, an IPO, and even the sale of a 20 percent stake in MPTC.

Since it began toll operations in 2006, MPTC has steadily expanded its portfolio to include six major tollway concessions in the Philippines, complemented by toll road assets in Indonesia and Vietnam through its subsidiaries.

Managing a total of 1,095 kilometers of toll roads across the Philippines, Indonesia, and Vietnam, MPTC continues to expand its network through a pipeline of ongoing projects.

Key developments under construction include: NLEX Segment 8.2 Section 1A, CAVITEX Segment 3B, the CAVITEX–CALAX Link, and CALAX Subsections 1 to 3, with completion expected between late 2025 and early 2026 for all four projects.

Additionally, pre-construction activities are underway for the Lapu-Lapu Expressway, which aims to connect CCLEX to the Mactan-Cebu International Airport, further expanding the Company’s reach.

MPTC’s toll revenues and total revenues both grew by 18 percent year-on-year (YoY) in the first half of 2025. Net income went up by five percent YoY to ₱4.9 billion, tempered by the increase in financing costs and the absence of the one-off gain recorded in the previous year.

PhilRatings stated that MPTC’s revenues are projected to continue growing over the next decade, supported by project completions, sustained traffic growth, and the implementation of tariff adjustments.

MPTC’s interest-bearing debt to equity (D/E) ratio increased from 1.5 times as of end-2020 to 3.0 times as of end-June 2025, amid faster increase in its debt levels relative to its equity.

“Nonetheless, the Company expects steady improvement in its leverage levels moving forward, supported by operating cash flow growth and proactive liability management,” PhilRatings said.