Toll road operator NLEX Corp. said Tuesday it signed a term loan facility for up to P5 billion with BDO Unibank Inc., the country’s largest lender.
NLEX said in a disclosure to Philippine Dealing & Exchange Corp. the P5-billion fixed rate notes would have a tenor of 10 years.
“The proceeds of the loan will be used by NLEX Corp. to finance its capital expenditures,” the company said.
NLEX in early September broke ground on the P1.6-billion capacity expansion of the 8.2-kilometer Subic Freeport Expressway to improve traffic safety and ease travel time to and from Subic Bay Freeport Zone.
The SFEX Capacity Expansion is expected to enhance accessibility and promote travel efficiency on the key road that connects Bataan and Zambales. It is seen to be completed by September 2020.
NLEX issued P6 billion worth of fixed rate bonds under a P25-billion bond shelf registration program last year.
The company expressed plans to issue more bonds to finance the construction of the North Luzon Expressway Connector Road Project.
The P23-billion NLEX Connector is an eight-kilometer elevated toll expressway over the right-of-way of the Philippine National Railways.
The project starts at the junction of NLEX Segment 10 at C-3 Road/5th Ave. in Caloocan City and will connect to South Luzon Expressway through Metro Manila Skyway Stage 3 Project in Manila. Upon completion, the toll road is seen to benefit around 35,000 vehicles a day.
The company recently inaugurated the NLEX Harbor Link Segment 10. The next phase of the project is the 2.6-km section from C3 Road, Caloocan City to R10, Navotas City.