MPTC eyes P40 billion from perpetual preferred stocks

MANILA, Philippines —  Expressway giant Metro Pacific Tollways Corp. (MPTC) is looking at the sale of perpetual preferred shares to raise as much as P40 billion this year.

“We’re talking to several (cornerstone) investors at this stage. Too early to say,” MPTC chairman Manuel V. Pangilinan said.

Pangilinan said MPTC is considering various options for its fundraising initiative aimed at paying down the company’s debts.

“For me, personally, the perpetual preferred shares might be a good route for them. But we don’t know when that’s available from the market in the amounts that tollways have to raise,” he said.

Pangilinan said the company is targeting to raise anywhere from P20 billion to P40 billion from the planned fundraising, which it is hoping to complete this year.

He said MPTC is trying to raise money to reduce its debts before resuming any discussions with San Miguel Corp. on the proposed merger of their toll road businesses.

“I think the numbers will look better for tollways and then you’re already in a position to do what you want to do,” Pangilinan said.

Meanwhile, a deal between Metro Pacific Investments Corp. (MPIC) and a local group for the planned sale of as much as 20-percent stake in MPTC is now looking bleak.

“There was talk about that but it has not been done yet,” Pangilinan said.

He said the talks may not be pursued anymore.

MPIC currently owns 93.3 percent of MPTC.

In late 2024, Mit-Pacific, a joint venture between Mitsui & Co. Ltd. and Japan Overseas Infrastructure Investment Corp. for Transport and Urban Development, swapped part of its stake in MPIC for 6.6 percent of MPTC.

The transaction, which closed in January, reduced MPIC’s stake to 93.3 percent of MPTC from 99.9 percent.

In the Philippines, MPTC handles the North Luzon Expressway, Subic-Clark-Tarlac Expressway, Manila-Cavite Expressway, Cavite-Laguna Expressway and Cebu-Cordova Link Expressway.