One of the Philippines' largest infrastructure investment companies is employing letters of credit (L/Cs) in its drive to secure high-value toll road projects in Southeast Asia.

Metro Pacific Investments (MPI) is optimistic it will secure toll road deals in the region by next year.

Regional ambitions

The infrastructure conglomerate is currently looking to strengthen its toll road portfolio in Southeast Asia, where it currently has interests in toll management companies in Vietnam and Thailand.

In August, MPI told the Philippine Stock Exchange that its Metro Pacific Tollways (MPT) unit is studying the possibility of investing in toll roads and other infrastructure projects in Southeast Asia.

The MPT board approved the creation of a special committee to negotiate the terms and conditions of any possible investments, and to appoint a representative to sign and execute any agreements related to the deal.

L/C authorisation

The MPT board also authorised the company to secure a credit line or standby L/C of up to the equivalent of around US$156 million from any local or international financial institution to support investments.

MPI is one of three Philippine units of Hong Kong-based First Pacific Corporation, which also has stakes in mining and media companies on the Southeast Asian islands.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.