Monday, January 21, 2013

Meralco to refinance P4-b loans, says Reyes


Manila Standard Today

By Alena Mae S. Flores Posted on Jan. 21, 2013 at 12:01am

Manila Electric Co., the country’s biggest power distributor, will refinance around P3 billion to P4 billion worth of loans within the second quarter, a company official said over the weekend.
“We’re in the process of discussing with investors, local banks. We’re trying to talk to them,” Meralco president Oscar Reyes told reporters, adding they might conclude the refinancing before the end of the second quarter.
The refinancing is expected to augment funding for the company’s capital expenditures this year.
Reyes said the company planned to fund its P12.8-billion capital expenditure program this year mainly through internal funds.
“We may fund it through internally generally funds without prejudice to tap additional borrowing for that,” he said.
Meralco plans to address the distribution requirements of franchise in anticipation of a growth in demand. “We need to be ahead of the curve… mainly transmission and generation requirements,” Reyes said.
Meralco’s subsidiary Meralco PowerGen Corp. is pursuing the development of a 600-megawatt, coal-fired power plant in the Subic Bay Freeport.
Reyes said Meralco was nearing the awarding of the construction contract and securing the funding for the project. “That’s likely to proceed in a relatively short period of time. We’re hoping to be able to do it within the year,” he said.
Reyes said Meralco would look at opportunities for growth in Southeast Asia, including Vietnam, to give the company a platform for growth.
“If there are opportunities in the region…I think the focus here… [is] generation, distribution. Those will essentially be funded by [long-term] borrowings,” Reyes said.
“Equally important, we want the Philippines to be recognized up there with the strong track record both in generation and distribution. It will give the Philippines and Philippine players the opportunity to be recognized and accepted as a credible player in the region,” he said.    source

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