Panay Energy, banks sign P11-b power loan

by Alena Mae S. Flores, 27 March 2015
from Manila Standard Today

Panay Energy Development Corp. signed an P11-billion loan agreement with a consortium of local banks to finance the construction of a 150-megawatt coal plant in the Visayas set for completion next year.

First Metro Investment Corp. acted as lead arranger of the loan facility from a group of 11 local banks.

“It is in response to the looming power shortage in the country, particularly the Visayas area. We raised P11 billion from a consortium of banks,” FMIC president  Roberto Juanchito Dispo said.

He said the consortium comprised of “almost the entire banking industry,” including Philippine National Bank, Bank of the Philippine Islands and Metropoliyan Bank & Trust Co.

“… we raised P11 billion from a consortium of banks… to expand by another 150 MW the existing clean coal project in Panay,” Dispo said. “It’s a 15-year project finance structure.”

Panay Energy, a unit of Global Business Power Corp., the power inverstment arm of the Metrobank Group, owns the new 150-MW coal plant in Iloilo City and another 164-MW coal plant in the same city.

“Completion is targeted on June 2016,” Global Business executive vice president Jaime Azurin said.

Panay Energy this month held a groundbreaking ceremony on the project. The expansion project can serve the power requirements of the entire Visayas area, including the islands of Panay, Boracay, Negros, Cebu and Leyte, at a rate of P5.05 per kilowatthour for long-term supply agreements.

Global Power last year switched on  the new 82-MW coal-fired power plant of  subsidiary Toledo Power Corp. in Barangay Daanlungsod in  Toledo City, Cebu.

The Toledo plant now supplies the power requirements of Carmen Copper Corp.’s mining expansion projects.

The expansion project, meanwhile, can help ease the power situation in the Visayas grid and serve the  requirements of major industries in western Cebu.

Global Business is one of the leading independent power producers in the Visayas. Its power plants are strategically located in areas where high growth is expected.

Global Business Power’s parent, GT Capital Holdings Inc. of tycoon George Ty, earlier raised $222.9 million (P9.84 billion) though a share sale.

GT Capital said Titan Capital Holdings Inc. and the Ty family sold 8.715 million common shares to foreign and domestic institutional investors at a price of P1,130.00 apiece. The selling price represents a 4.2 percent discount to GT Capital’s closing price of P1,180 on Feb. 2.

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