Metro Pacific Tollways South Managment Corp. (MPT South) is looking into green financing to refinance its existing loans for the development of the Cavite-Laguna Expressway (Calax).
Chris Lizo, the company’s CFO, said the group intends to be the “pioneer in terms of doing green financing” in the tollways sector in the Philippines, and is planning to implement this fund raising activity within the next three years.
“We have financing in place already for the completion of Calax. At some point we want to consider green financing to refinance our loans in Calax. Of course with green financing comes the obligation to keep or maintain certain standards in terms of our commitment to make the road sustainable. It’s a medium term aspiration,” he said during the signing of a partnership contract between MPT South and the United States Agency for International Development’s (USAID) Sustainable Interventions for Biodiversity, Oceans and Landscape (Sibol).
In 2018, the expressway operator raised P24 billion in loans from several banks to finance the construction of the Calax, which is expected to be completed within the next three years.
Calax is a 45-kilometer high-speed road network connecting the two provinces of Cavite and Laguna, targeting to serve around 45,000 motorists upon its completion. As of today, Calax operates from Biñan, Laguna up to the east of Silang, Cavite.
“When we are ready we will consider looking at green financing to refinance our existing loans,” Lizo said, noting that some of the considerations for this initiative include the completion of the project and meeting sustainability goals.
Meanwhile, MPT South VP Cynthia Casino said the partnership with USAID Sibol will help accelerate the sustainability initiatives of the group. Under the partnership, the two groups will develop a biodiversity program initially for Calax.
“Our intention is to pilot Calax and expand this into our other expressway,” she said.
MPT South is part of the Metro Pacific Tollways Corp., the largest expressway operator in the Philippines with holdings in various thoroughfares in Luzon and Visayas.