Trans-Asia to raise fresh debt for new clean-coal power plant

Manila Times.net

TRANS-ASIA Oil and Energy Development Corporation will raise new debt to partially finance the construction of is its clean coal power plant in Calaca, Batangas.

Francisco Viray, Trans-Asia president and chief executive, told reporters the company would borrow about P8.7 billion to finance the debt component of the P12.4-billion facility in Barangay Puting Bato West, Calaca.

The transaction is being negotiated with lead arranger BDO Capital and Investments Corporation and is expected to be completed within the year.

Construction of the plant is expected to commence next month.

Trans-Asia recently concluded a P1.17-billion stock rights offering that will partly finance the equity portion of the 135-megawatt coal facility and the 20-megawatt Maibarara geothermal field in Calamba, Laguna and Santo Tomas, Batangas, where the company has a 25-percent stake.

The Phinma Corporation subsidiary is negotiating with potential local and foreign partners for the development of the clean coal plant and the 54-megawatt wind project in San Lorenzo, Guimaras.

Viray said the strategic partners might bring in capital and additional resources for the two projects. Talks are expected to wrap up within the year.

The coal, geothermal and wind projects will raise Trans-Asia’s total power generating capacity to about 250 megawatts in the next five years. It has a capacity of 76.4 megawatts generated from three diesel power plants in Bulacan, Laguna and Guimaras.

“As far as our objective is concerned, we just want to be a niche player in the industry. We don’t have to be big,” Viray said.

Trans-Asia is also adopting a cautious and opportunistic approach for its pioneering venture in Mindanao since several firms are in the midst of constructing power facilities to boost capacity in the island.

“Over and above these projects, everything else will depend on opportunity, if it’s available,” Viray said.

In March, the company disclosed that it had started the pre-engineering and feasibility study for a coal facility, similar to the Batangas plant, that would be built in northeastern Mindanao.

Trans-Asia shares fell to P1.03 on Monday from P1.04 on Friday.

Krista Angela M. Montealegre