MPIC File photo

Metro Pacific Investments Corp. (MPIC) is unloading 20% shares in its Metro Pacific Tollways Corp. (MPTC) toll roads unit to raise funds and cut down debt obligations.

“The main use will be the reduction of debts MPTC has,” MPIC chairman Manuel V. Pangilinan said.

The MPIC chairman also said that the plan to sell MPIC’s shares in its tollways unit forms part of the company’s objective to raise P30 billion-P50 billion to pay off MPTC’s debt.

MPIC currently owns over 99% of MPTC.

MPIC chief financial officer Chaye Cabal-Revilla said the company’s plan is to “repay [MPTC’s] debt in absolute terms.”

“We are actually in the process of selling a portion of MPTC’s stake to a third party. The proceeds of which will be… the proceeds of which will be used by MPTC to pay off their debt [of about] P64.99 billion,” she said.

MPTC is the holding company for the North Luzon Expressway (NLEX), the Subic-Clark-Tarlac Expressway (SCTEX), the Manila-Cavite Toll Expressway (CAVITEX), the Cavite-Laguna Expressway (CALAX), the Cebu-Cordova Link Expressway (CCLEX), and the NLEX Connector.

Last September, MPTC and its subsidiary, PT Margautama Nusantara, in partnership with Warrington Investment Pte. Ltd. acquired a 35% equity interest in PT Jasamarga Transjawa Tol (JTT) for $930.3 million.

Cabal-Revilla revealed that MPTC’s acquisition of JTT was “all debt-funded.”

JTT manages and operates the Trans Java Toll Road segments in Java, Indonesia, which has a total length of 676 kilometers.