THE Securities and Exchange Commission (SEC) has approved the P25-billion shelf registration of the fixed rate bond of Nlex Corp.
The company said it would initially launch P6 billion from the said shelf registration. The company said P4 billion of the amount is for its primary offering and the rest as its over-subscription option.
Nlex, which stands for North Luzon Expressway, said it will use proceeds to mainly fund the capital-expenditure requirements of the R-10 Section project and for general corporate purposes. The R-10 Section Project is a 2.6-kilometer elevated toll road, which will extend the C-3 Road exit ramp of Segment 10 to R-10 Road near the Port Area, providing an alternative route to motorists who suffer from the worsening traffic congestion in the Port Area.
The R-10 Section Project is estimated to cost P6.6 billion, and is scheduled to be completed within 16 months after commencement of construction.
“Construction is expected to commence within the second quarter of 2018,” the company said.
“The remaining balance of the construction costs will be funded using internally generated funds and/or external financing, which may include proceeds from subsequent tranches of the unissued portion of the bonds under shelf registration,” it said.
BDO Capital and Investment Corp. and First Metro Investment Corp. have been chosen as the company’s underwriters for the said deal.
The company, which operates Nlex and Subic-Clark-Tarlac Expressway, said it will sell seven-year bonds and 10-year debt papers.