Metro Pacific Corp. will issue P2-billion worth of short-term commercial papers (STCPs) to fund its working capital and debt-reduction program for this year, a company statement said yesterday.
MPC Group vice president for corporate communications and investor relations Corazon Guidote said the STCPs, combined with other substantial credit lines presently available to Metro Pacific, "obviates any possible need for Metro Pacific to issue additional commmon shares this year."
MPC designated All AsiaCapital and Trust Corp. as lead selling agent for the issue. The other members of the selling syndicate include Abacus Capital and Investment Corp., AB Capital and Investment Corp., Amalgamated Investment Bancorporation, Asian Alliance Investment Corp., Bancommerce Investment Corp., Corporate Investments Philippines Inc., Land Bank of the Philippines, Unicapital Inc., United Pacific Capital Corp. and Wise Capital Investment and Trust Co. Inc.
The Philippine Ratings Services Corp. (formerly CIBI Ratings Inc.), the country's leading credit rating agency, had maintained MPC's outstanding LTCP issues at a high grade of PRS-A while its STCPs received a PRS-2 credit rating, both of which indicate MPC's good credit standing and ability to pay.
MPC's ongoing efforts to improve its balance sheet paid off handsomely last year. With expected record earnings of P2 billion, up from P329 million in 1998, the company likewise trimmed its liabilities by 22 percent to P40.6 billion as of September 1999.
Last year, MPC issued about P4.1 billion worth of new equity, the proceeds of which were used primarily to pay off debts.