By Danessa Rivera (The
Philippine Star) | Updated June 28, 2016 - 12:00am
MANILA, Philippines - Lopez-led
Energy Development Corp. (EDC) has borrowed P5 billion from Union Bank of the
Philippines to finance its capital spending this year.
EDC disclosed yesterday it executed
a loan agreement with UnionBank for the total amount of P5 billion.
The amount loaned will help augment
the company’s cash requirements this year, EDC vice president for corporate
finance Erwin Avante said in a text message.
“We have a big capex of around P14
billion, debt service of around P11 billion,” he said.
Last March, EDC announced it has set
P14 billion in capital expenditures this year, higher compared to the P10-12
billion earmarked in 2015.
The capex is focused on increasing
the reliability of its aging facilities, such as the 3x112.5-megawatt (MW)
Tongonan geothermal plant and the 125-MW Upper Mahiao goethermal plant.
The firm has already ordered parts
for the Tongonan plant from Mitsibushi and new motors for the Upper Mahiao
plant from GE.
Part of the capex will also be spent
on drilling projects.
The borrowing will also be used to
refinance a maturing loan this year, EDC CFO Nestor Vasay said in another text
message.
Issued in 2009, EDC’s P3.5-billion
retail bond will mature this year. The capital raising activity was used to
partly finance outstanding loans, projects and other general corporate
purposes.
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