ABOITIZ SEEKS P24 BILLION TO FUND ITS DAVAO CLEAN COAL MEGAPLANT
“A UNIT of Aboitiz Power Corp. (AboitizPower) has signed an agreement with a consortium of local banks for a loan of up to P24 billion to fund its 300-megawatt (MW) coal-fired power plant in Mindanao, the listed parent firm said in a disclosure yesterday.
“Therma South, Inc. (Therma South) signed an Omnibus Agreement with a consortium of lender-banks to obtain loans and credit accommodations in the amount of up to P24 billion,” the disclosure read.
AboitizPower identified BDO Capital & Investment Corp. as the issue manager and lead arranger of the transaction; while BDO Unibank, Inc.-Trust and Investments Group was appointed the trustee and facility agent.
“The proceeds of the loan will be used to finance the construction and operation of Therma South’s 2×150 circulating fluidized-bed coal-fired electric power generation facility…” the disclosure read.
AboitizPower President and Chief Executive Officer Erramon I. Aboitiz had said in May that the 300-MW power plant will be financed 70% through loan and 30% through equity.”