MPTC and GIC to invest in Trans-Java toll roads

Philippines, 2 July 2024 - Metro Pacific Tollways Corporation (MPTC), the leading toll road provider in the Philippines, through its subsidiaries PT Margautama Nusantara (MUN) and PT Metro Pacific Tollways Indonesia Services (MPTIS), and its partner, GIC - a global institutional investor - will enter into a strategic investment cooperation for a 35% stake worth about USD 1 billion in Jasamarga Transjawa Tol (JTT) - a subsidiary of the leading Indonesian state-owned toll road operator, PT Jasa Marga (Persero) Tbk (Jasa Marga).

JTT is a network of 13 toll roads in the provinces of West Java, Central Java, and East Java. The combined 676-kilometer long road is considered Indonesia's crown jewel that allows the efficient flow of 850,000 vehicles daily across Indonesia's economic powerhouse of Java Island.

With a long and strong track record as a leading regional toll road operator, the addition of JTT toll roads will further boost MPTC's portfolio to 1,130 kilometers connecting various economic zones in the Philippines and Indonesia.

The investment will allow Jasa Marga to raise capital, maintain a healthy leverage level, and continue expanding toll road networks across Indonesia - enhancing infrastructure and connectivity for future economic development. By bringing in MPTC, a leading international toll road operator, and GIC, a highly experienced global infrastructure investor, as new and value-adding partners, Jasa Marga can maintain full control over JTT's strategic infrastructure assets and solidify the quality of its services.

The signing was attended by the officials of MPTC, MUN, and MPTIS last June 28, 2024.

"This deal fortifies MPTC's goal to expand in Southeast Asia and enhance our infrastructure portfolio. This expansion in Indonesia aligns well with our commitment to improve our regional presence in toll road operations," said Rogelio L. Singson, MPTC President and CEO.

Last year, GIC purchased 33% stake in PT Margautama Nusantara (MUN) for USD 209.9 million. Hence, MPTC's stake in MUN has decreased to 60.3% - while it continues to hold the majority share. MPTC also partnered with GIC in bidding for JTT.

HSBC served as the joint financial advisor to MPTC and sole financial advisor to GIC for this transaction, while BCA Sekuritas acted as the joint financial advisor to MPTC.