| By Donnabelle L. Gatdula (The Philippine Star) Updated October 18, 2010 12:00 AM |
MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM) will need $1.2 billion to finance the maturing obligations of the National Power Corp. (Napocor) next year.
PSALM president and CEO Emmanuel R. Ledesma Jr. said they are likely to raise this requirement in pesos.
Ledesma noted that Napocor’s maturing obligations in 2011, inclusive of interest, amount to approximately $1.2 billion. The amount consists of a $200-million bond that will mature in March 2011, and $400 million worth of floating rate notes that will be due in August 2011.
The PSALM chief said its present liability management program allows it to either tap the local capital market or engage in dollar financing to settle the obligations.
Ledesma said PSALM is leaning towards raising the necessary funds in the local currency, considering the successful government launch of the peso bonds in September.
He, however, pointed out that the final choice will depend on what the PSALM Board will deem as more advantageous to the government.
The new PSALM Board is scheduled to meet next week to discuss the corporation’s liability management program and its privatization schedule, among other matters.
Under the board-approved Liability Management Program Phase 2 (LMP-2), PSALM has peso bonds/credit facility with an aggregate amount of up to P50 billion, and a US dollar bond issuance of up to $1 billion.
The corporation still has to use the remaining P20 billion of the P50-billion peso bonds.
Last April, PSALM successfully entered the domestic capital markets by offering P30 billion worth of five and seven-year fixed-rate retail bonds.
LMP-2 was launched last year to address liquidity concerns regarding PSALM’s maturing obligations in 2009-2011, which amounted to 34.61percent of PSALM’s principal payments. The program was approved by the PSALM Board on Aug. 26, 2009.
The new Board is also expected to finalize PSALM’s privatization plan for the rest of 2010 and for 2011 even as the Department of Energy (DOE) reviews the present program.
PSALM president and CEO Emmanuel R. Ledesma Jr. said they are likely to raise this requirement in pesos.
Ledesma noted that Napocor’s maturing obligations in 2011, inclusive of interest, amount to approximately $1.2 billion. The amount consists of a $200-million bond that will mature in March 2011, and $400 million worth of floating rate notes that will be due in August 2011.
The PSALM chief said its present liability management program allows it to either tap the local capital market or engage in dollar financing to settle the obligations.
Ledesma said PSALM is leaning towards raising the necessary funds in the local currency, considering the successful government launch of the peso bonds in September.
He, however, pointed out that the final choice will depend on what the PSALM Board will deem as more advantageous to the government.
The new PSALM Board is scheduled to meet next week to discuss the corporation’s liability management program and its privatization schedule, among other matters.
Under the board-approved Liability Management Program Phase 2 (LMP-2), PSALM has peso bonds/credit facility with an aggregate amount of up to P50 billion, and a US dollar bond issuance of up to $1 billion.
The corporation still has to use the remaining P20 billion of the P50-billion peso bonds.
Last April, PSALM successfully entered the domestic capital markets by offering P30 billion worth of five and seven-year fixed-rate retail bonds.
LMP-2 was launched last year to address liquidity concerns regarding PSALM’s maturing obligations in 2009-2011, which amounted to 34.61percent of PSALM’s principal payments. The program was approved by the PSALM Board on Aug. 26, 2009.
The new Board is also expected to finalize PSALM’s privatization plan for the rest of 2010 and for 2011 even as the Department of Energy (DOE) reviews the present program.
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