Thursday, April 11, 2019

Aboitiz Power gets $300M loan for Ayala thermal unit acquisition


Marchadesch, Barbara

Aboitiz Power Corp. has secured a $300-million loan facility from several lenders to partly finance its acquisition of stakes in Ayala group's thermal energy business unit.
In a disclosure to the Philippine Stock Exchange on Wednesday, Aboitiz Power said it signed a facility agreement with DBS Bank Ltd., Mizuho Bank Ltd., MUFG Bank Ltd., and Standard Chartered Bank "to obtain an acquisition loan in the amount of up to $300,000,000."
"The proceeds of the loan will be used to partially finance the acquisition by Aboitiz Power of 49 percent voting stake and 60 percent economic stake in AA Thermal Inc.," it said.
In September last year, Aboitiz Power signed a $579.2-million share purchase deal with Arlington Mariveles Netherlands Holding BV—an affiliate of Ayala group’s AC Energy Inc.—for the acquisition of 49-percent voting interest and 60-percent economic interest in AA Thermal.
The purchase of stakes in AA Thermal is part of Aboitiz Power's goal to build a portfolio of 4,000 megawatts of net attributable capacity by 2020.
The deal was approved by the Philippine Competition Commission late last month, stating that the transaction "would not substantially affect competition in the relevant markets for power generation and retail electricity supply in Luzon and the Visayas."
AA Thermal has interests in GNPower Mariveles' twin coal plants in Bataan. It also has interests in GNPower Dinginin, which has a coal plant with 668-megawatt capacity in Dinginin, Bataan. — BM, GMA News

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