Meralco to tap P75B credit facility from 3 banks

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The Manila Electric Co. (Meralco) said it will draw from its P75 billion credit facility from three major banks to finance investments and other general corporate purposes.

The company said in a disclosure to the Philippine Stock Exchange yesterday the credit facility has a maximum amount of P75 billion, payable in 12 years.

Meralco said the credit facility to be provided by BDO Unibank Inc., Bank of the Philippine Islands and Metropolitan Bank and Trust Co. will be utilized within the week.

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Betty Siy-Yap, Meralco’s chief finance officer and senior vice president, said in a separate message to reporters that the entire P75 billion may be drawn as it will be used for the acquisition of investments in Chromite Gas Holdings Inc.

Last month, the Philippine Competition Commission approved the joint acquisition of power facilities and a liquefied natural gas (LNG) terminal by Meralco’s Meralco PowerGen Corp. (MGen), Therma Natgas Power Inc. of the Aboitiz Group and San Miguel Global Power Holdings Corp. (San Miguel Power).

Under the transaction, MGen and Therma, through their joint venture Chromite Gas, are acquiring a 67-percent equity interest in South Premiere Power Corp. (SPPC), Excellent Energy Resources Inc. (EERI) and Ilijan Primeline Industrial Estate Corp.

MGEN and Therma, through Chromite, along with San Miguel Power, also jointly acquired 100 percent of Linseed Field Corp. (LFC), which operates an LNG terminal in Batangas City.

As a result of these acquisitions, MGen and Therma, through their 60/40 ownership of Chromite, will control 67 percent of SPPC, EERI and Ilijan Primeline, while San Miguel Power retains a 33-percent stake in these three entities and gains a corresponding interest in LFC. 

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