Infrastructure conglomerate Metro Pacific Investments Corp. said it secured P10 billion worth of long-term loans from two banks to finance investments in several projects.
Metro Pacific said in a disclosure to the stock exchange Wednesday it signed separate agreements to obtain a 10-year fixed-rate term loan worth P5 billion from BDO Unibank Inc and another a 10-year fixed-rate term loan for another P5 billion from Union Bank of the Philippines.
Metro Pacific plans to use proceeds from the loans to finance investment in several projects and other general corporate purposes.
The conglomerate earlier said it had no plans to raise capital through the equities market to fund programmed capital expenditures over the next five years.
Metro Pacific earlier said it planned to spend up to P820 billion to accelerate expansion of tollroads, and power and water projects in the country.
The company is spending P653 billion on pipeline projects from 2018 to 2022 and P167 billion on projects that are currently being pursued by subsidiaries in the areas of tollroads, biogas and logistics.
It has earmarked P100 billion for 2018, or nearly double than the P56-billon programmed spending for 2017.
Metro Pacific will earmark P38 billion or the bulk of the 2018 capital spending to 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 the logistics and hospital units.
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. This will be company’s maiden bond issuance.
It plans to issue the first tranche in the first half of next year.
Metro Pacific is also looking at selling down in Maynilad and a possible initial public offering of the hospital group also as options to raise funds to finance the capital spending plan.