Business Mirror
THURSDAY, 05 JANUARY 2012 20:45 LENIE LECTURA / REPORTER
POWER retailer Manila Electric Co. (Meralco) raised P3 billion from the issuance of fixed-rate notes, the utility firm announced yesterday.
First Metro Investment Corp. was tapped as arranger and underwriter for the facility which was oversubscribed, said Roberto Juanchito T. Dispo, FMIC President.
The issuance was in P1 billion of fixed rate seven-year notes and P2 billion in fixed rate 10-year tenor, which will be issued on January 9. The debt papers were fixed at a yield of 5.5346 percent and 5.6387 percent per annum, respectively.
Meralco President and Chief Executive Officer Manuel V. Pangilinan said the issue was oversubscribed with the lenders including a mix of universal, savings, trust and investment banks, investment funds and insurance companies.
He expressed his appreciation to the investors for their strong support and overwhelming response as reflected in the tight pricing received by their latest fund-raising transaction.
“[On] December 16, 2011 Meralco successfully launched the notes issue to the market. In less than three weeks, P3 billion was raised by various financial institutions and insurance companies. The Meralco notes were well-received by the market with an oversubscription over the planned issue size of P3 billion.” said Dispo.
Meralco is the largest electric power distribution company in the country with franchise service area covering 9,337 square kilometers, encompassing 31 cities and 80 municipalities in and around Metro Manila.
The franchise area contributes about 46 percent of the country’s gross domestic product. Its franchise is valid until 2028.
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