Energy Development Corp., the country’s biggest producer of geothermal energy, is seeking $325 million in loans from foreign banks and a multilateral institutions to help finance maturing obligations and other capital expenditure projects.
Inquirer sources said that about $175 million of the loans would come from three foreign banks—Credit Agricole, Standard Chartered Plc and Australia and New Zealand Banking Group Ltd.
“Proceeds will be used basically for the refinancing of the Miyazawa II [yen loan]. We need to settle 22 billion yen, equivalent to about P12 billion,” the source said.
The sources added that part of the amount would also be used for the company’s expansion and greenfield power projects and partly finance the acquisition of the 150-megawatt (MW) Bacon-Manito (BacMan) geothermal power plants.
EDC, through its wholly owned subsidiary Bac-Man Geothermal Inc., submitted last month the highest bid of $28.25 million for the Bacon-Manito geothermal power plant package. It has yet to be turned over to the Lopez-led firm.
According to the source, EDC was just awaiting the approval of the Bangko Sentral ng Pilipinas before it could tap the loan facility.
Meanwhile, the remaining $150 million will come from International Finance Corp. and other bilateral sources, according to documents from the World Bank unit.
IFC documents showed that the company, which is an existing IFC client in good standing, was seeking a direct IFC investment of up to $75 million and a potential mobilization of another $75 million from bilateral sources.
Proceeds from the loans would be used to partially finance the company’s medium-term capital expenditure plan, IFC added.
“EDC is the largest company currently utilizing geothermal sources of energy in the Philippines, thus our support will provide critical additional resources of an appropriate tenor to help develop projects in the geothermal energy sector and thereby help the country move toward greater reliance on private sources of growth in the renewable infrastructure sector,” the documents said.
http://business.inquirer.net/money/topstories/view/20100606-274242/EDC-seeks-325M-in-loans
