Infrastructure conglomerate Metro Pacific Investments Corp. said it has no plans to tap the capital markets to raise funds in the near future despite a massive spending plan for 2018.
Metro Pacific said in a disclosure to the stock exchange Friday its management firmly decided it was not necessary to conduct a capital raising exercise in the near future.
Metro Pacific issued the statement to dispel increasing speculations the group plans to tap the capital markets for its funding requirements.
“Please be informed that although MPI has recently received a number of unsolicited proposals for capital raising exercises, MPI management has firmly decided that it is not necessary for MPI to conduct a capital raising exercise in the near future,” Metro Pacific said.
“The continued expansion of MPI will be funded through a combination of internal resources and external borrowing,” the conglomerate added.
Metro Pacific earlier said it would spend up to P820 billion to accelerate expansion of its tollroads, power and water projects in the country.
Metro Pacific plans to spend P653 billion for pipeline projects from 2018 to 2022, while units in the areas of tollroads, biogas and logistics will invest the balance of P167 billion.
The conglomerate earmarked P100 billion for 2018, or nearly double than the P56-billon programmed spending for 2017.
It will allot the bulk or P38 billion of the 2018 capital spending for the tollroad business, P21 billion for Manila Electric Co., P17 billion for Light Rail Manila Corp., and P6 billion each for Maynilad Water Services Inc. and logistics and hospital.
To partially finance its 2018 capital expenditure, the conglomerate plans to file with the Securities and Exchange Commission a P30-billion bond shelf registration with an initial tranche of P10 billion, its maiden issue.
Metro Pacific is also looking at selling down in Maynilad and the possible initial public offering of its hospital group to raise funds and finance capital spending.