Manila North Tollways Corporation lists maiden issue on the PDEx marketPosted on: April 1, 2014
Makati, Philippines, 31 March 2014, Monday – The Philippine bond market concluded the first quarter with the entry of a new issuer – Manila North Tollways Corporation. MNTC’s maiden listing in the PDEx organized secondary market is the fifth corporate bond listing of 2014, for PhP 7 billion MNTC bonds due 2021 and 2024. This brings the year-to-date total of new listings to PhP 66.8B, up 568% compared to the first quarter of 2013.
PDS Group President & CEO Cesar B. Crisol said, “It is of interest to note that MNTC and PDS share a common mission: to enable our public to experience safe travel through the Infrastructure that we build and operate. Just as MNTC strives to build high-quality expressways, we at PDS strive to provide robust electronic trading to post-settlement highways. And for our stakeholders, both our institutions aim to deliver a speedy, efficient, seamless, interconnected, and orderly infrastructure that contributes to the economic development of the Philippines.”
“It is not surprising to know that MNTC’s issuance has met strong demand from the domestic market and that this bond debut has been oversubscribed by 2.3 times the base offer. MNTC has a proven track record in toll road development and management and this alone can kick off what promises to be a very sustainable investment option, responsive to the needs of the growing investor base,” concluded Mr. Crisol.
Today, two subsidiaries of Metro Pacific Investment Corporation (MPIC) are now listed in the organized secondary market. The other one is Meralco, with its PhP18.5 Billion Fixed Rate Putable Bonds due 2020 and 2025 listed last December 2013. PDS looks forward to seeing more MPIC subsidiaries tapping the local organized debt market to meet their financial objectives while assuring would-be and current investors the ease of entry and exit for these bonds.
The listed security, PhP4.4 billion seven-year bonds and PhP2.6 billion 10-year bonds carry a coupon rate of 5.0700% and 5.5000% per annum respectively. Net proceeds of this offer will be used to partially fund the 5.65 km Segment 10 of the NLEX Project which will connect the MacArthur Highway in Valenzuela City, to C-3 Road in Caloocan City. The Bonds have been rated PRS Aaa by the Philippine Rating Services Corporation (“PhilRatings”). It is the highest rating assigned by PhilRatings. Obiligations rated PRS Aaa are of the highest quality with minimal credit risk and reflects the obligor’s extremely strong capacity to meet its financial commitment.
Metro Pacific Tollways Corporation (MPTC) President and MNTC Director Ramoncito S. Fernandez led the ringing of the bell while MNTC President & CEO Rodrigo E. Franco shared a few words.
“We are deeply honored to join today the elite list of issuers of PDEx-listed fixed income securities. Of equal importance, we are comforted by the knowledge that we now have another means of access to the domestic capital market. We intend to return to the market in the near future to seek more funds for our road building activities. We also hope that our bond transaction has contributed to the further development of the domestic capital market. We have given the investing public an opportunity to invest not only in well-priced and well-structured fixed income securities but also in a project that has significant development impact,” said Mr. Franco in his message on behalf of the Issuer.
The event was held at the PDS Group Office at The Enterprise Center, Makati City and was attended by representatives from the Issue Participants, including BDO Capital & Investment Corporation President Eduardo V. Francisco, First Metro Investment Corporation President Roberto Juanchito T. Dispo, PNB Capital and Investment Corporation President Alberto E. Bienvenida, SB Capital Investment Corporation Director Joy Supan, and BPI Capital Corporation Director Eric Roberto M. Luchangco. #