(The Philippine Star) | Updated October 17, 2013 - 12:00am
MANILA, Philippines - Therma South Inc., a subsidiary of Aboitiz Power Corp., is borrowing P24 billion to finance the construction of a coal-fired power generation facility in Davao.
In a disclosure to the Philippine Stock Exchange yesterday, Aboitiz Power said Therma South has signed an omnibus agreement with a consortium of lender-banks for loans and credit accommodations of up to P24 billion.
“The proceeds of the loan will be used to finance the construction and operation of Therma South’s 2x150-megawatt circulating fluidized-bed coal-fired electric power generation facility located in Davao City and Davao del Sur,” AboitizPower said.
Therma South has tapped BDO Capital & Investment Corp. as issue manager and lead arranger. It also appointed BDO Unibank Inc.-Trust and Investments Group as trustee and facility agent.
Therma South president and chief operating officer Benjamin A. Cariaso Jr. said they are on track to complete the project by early 2015.
Local leaders are counting on the completion of Therma South’s power plant, considering it as a solution to the current power crunch in Mindanao.
Officials said Therma South is part of AboitizPower’s P35-billion plan to provide additional capacity to solve the Mindanao power crisis.
In February, AboitizPower, together with its partners, said it was pouring in P85 billion in the next four years to expand its power business.
AboitizPower said the investment would translate to roughly 1,400 to 1,500 MW of additional capacity. source
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