METRO PACIFIC Investments Corp. (MPIC) has obtained a P20-billion syndicated loan facility to finance its capital expenditures.
In a disclosure to the stock exchange on Monday, the infrastructure conglomerate said it has signed the 10-year syndicated term loan facility.
“Proceeds of said term loan facility will be used by MPIC to fund capital expenditures and for other general corporate purposes,” MPIC said.
BDO Capital & Investment Corp. and BPI Capital Corp. served as the arrangers and book runners for the loan.
The local unit of Hong Kong-based First Pacific Co. Ltd. said in 2017 that it plans to spend P653 billion in capital expenditures over the next five years, as it plans to further grow its toll roads, power, water, hospital, logistics, and railways units in the future.
Majority of the spending will be poured into its power business, in order to support the expansion of Manila Electric Company’s (Meralco) power generation capacity as well as Global Business Power Corp. (GBP)’s foray into renewable energy sources.
The company is also spending P125 billion until 2022 for Metro Pacific Tollways Corp. to pursue six projects, including the extension of the North Luzon Expressway, the Cavite-Laguna Expressway, the Cavite-C5 South Link, and the Cebu Cordova Link Expressway.
MPIC has allotted P45 billion for Maynilad Water Services, Inc. during the same period, as it pursues bulk water projects in the country as well as other projects in the Association of Southeast Asian Nations (ASEAN) region.
Meanwhile, Light Rail Manila Corp. will have a budget of P70 billion to upgrade and maintain Light Rail Transit Line 1. The hospital unit through Metro Pacific Hospital Holdings, Inc. has cornered P13 billion of the capital spending.
For this year alone, MPIC has committed to spend about P100 billion for its expansion.
MPIC booked a core profit of P12.2 billion in the first nine months of 2018, eight percent higher year-on-year as system-wide revenues also jumped by eight percent to P302.9 billion in the same period.
The company targets to end the year with a core net income of P15 billion, expecting slower growth in the fourth quarter. This would indicate a six percent increase from MPIC’s core net income of P14.1 billion posted in 2017.
MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls.
Shares in MPIC dropped 1.47% or seven centavos to close at P4.70 each at the stock exchange on Monday. — Arra B. Francia
