Metro Pacific Tollways Corporation is getting a financial adviser to help it raise both debt and equity to finance P36 billion in new road projects, including a possible increase in its stake in Skyway builder Citra Metro Manila Tollways Corporation within the year.

In a press briefing in Hong Kong, MPTC president Ramoncito Fernandez said they really need an adviser to help them decide on the percentage of debt and equity mix as well as the best options for floating debt and offering stocks.

Abad said they hope to be able to raise their stake in CMMTC to “a good minority” and hope to complete negotiations with Citra within the year.

Jose Ma. Lim, president of MPTC parent company Metro Pacific Investments Corporation, said that they hope to raise their stake in CMMTC from the current five percent to a least 33 percent.

However, he noted that this could be diluted to 25 percent once some bondholders convert debt to equity.

The foreign shareholders control about 66 percent of the company but will be reduced to 50 percent when MPTC comes in.

CMMTC is behind the South Metro Manila Skyway (SMMS) Project, the Stage 1 of which covers the 9.5-kilometer elevated toll road from Buendia to Bicutan; and of the upgrading of the 13.5-km at-grade toll road from Magallanes to Alabang. Stage 1 has been operational since 1999.

Construction of Stage 2 of the SMMS Project is ongoing and covers the 6.88-km elevated section from Bicutan to Alabang as well as the continued rehabilitation of existing at-grade section of the Skyway from Magallanes to Alabang at a cost of P10 billion.

Other projects in the pipeline is a road connecting the North Luzon to the South Luzon Expressways at a cost of P16 billion and segment 9 and 10 of the NLEX connecting it to McArthur Highway in Valenzuela and the port area.
 
Fernandez said they are not sure yet if they will raise 70 percent dent and 30 percent equity for its huge cash requirement but noted that they currently have a small public float and will have to conduct a follow-on offering eventually to expand the company’s capital base.

Fernandez said earlier that MPTC is considering raising fresh capital to increase its public float to about 40 percent help fund its P36 billion capital expenditure program for the next five years.

He said that while they have yet to decide on whether the firm will issue and sell new shares, “my view is that as and when we expand our tollway system, most likely we will need to raise our equity level.”

Fernandez noted that MPTC’s current public float is very small, at about 0.15 percent with Metro Pacific Investments Corporation owning over 99 percent of the company.

“We want to make it a genuine public company,” he said adding that they are now talking to potential private investors for possible capital infusions.