Panay Energy raises P11 billion to finance coal plant in Iloilo

by Lenie Lectura, 08 April 2015
from BusinessMirror

PANAY Energy Development Corp. (PEDC), a wholly owned subsidiary of Global Business Power Corp.  (GBPC), on Wednesday said it raised P11 billion to partly finance an expansion project involving a 150-megawatt (MW) coal-fired power plant in Iloilo City.

The amount was raised from a 12-year syndicated loan from the Bank of the Philippine Islands, China Banking Corp., Land Bank of the Philippines, Rizal Commercial Banking Corp., Philippine National Bank, and the Philippine American Life and General Insurance Co.

Through First Metro Investment Corp., the lead arranger of the loan, PEDC’s P11-billion loan was oversubscribed by P3.6 billion.

“The P11-billion funding couldn’t have come at a more opportune time as tight power supply is anticipated due to the accelerated business developments in Panay, especially in the areas of property development and tourism industries. We are truly honored for gaining the confidence and support of like-minded financing institutions that serve as our reliable partners in fueling economic development in the Visayas, particularly in Panay,” GBPC EVP Jaime Azurin said. PEDC is currently constructing its 150-MW expansion project worth P15.6 billion. Seventy percent of the project cost is covered by the loan, while the remaining 30 percent is financed through equity.

The power facility is already 40 percent complete as of March 15. It will be ready by mid-2016.

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