Thursday, October 7, 2010

Three banks lend P1.7b to Aboitiz group’s Veco

Manila Standard Today
Visayan Electric Co., the country’s second-largest electric distribution utility, has signed a P1.7-billion note facility with local banks to finance capital expenditures.
Veco said in a statement it tapped Metropolitan Bank and Trust Co., China Savings Bank and BPI Asset Management as lenders in the issue, with First Metro Investment Corp. as issue manager and Metrobank as agent.
“We are very pleased at this issuance, which provides working capital at reasonable conditions for Veco’s recurrent capital expenditure. As the economy of Cebu, and the rest of the franchise area grow, so do the capital expenditures of Veco,” president Dennis Garcia said in a statement.
Veco’s capital expenditure historically ranges at around P500 million to P700 million annually. Veco expects to spend about P1.38 billion next year, P815 million in 2012, P575 million in 2013 and P521 million in 2014.
Veco said its capex increased from current levels due to its plan to purchase sub-transmission assets, build new substations and other improvements to meet customer growth and ensure continued reliable service.
“Veco’s P1.7-billion multi-tranche notes issuance marks the company’s capital market debut, a significant milestone indeed. First Metro feels privileged to have arranged this transaction,” First Metro vice president Arsenio Ona said. Alena Mae S. Flores

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