Apollo Global Capital Inc. said unit JDVC Resources Corp. (JDVC) has tapped a $8 million (P416 million) credit line facility from the Development Bank of the Philippines (DBP).
Apollo’s 90.47 percentowned subsidiary secured the loan through the DBP’s expor t packing credit line, which carries a floating rate “ based on DBP’s prevailing rate at the time of availment.
The amount will be used as a pre-shipment financing facility for JDVC’s working capital requirements in its export production of iron ore.
“JDVC shall assign, transfer and physically convey in favor of DBP, its successors and assigns, all of JDVC’s rights, title to and interest in the receivables arising from the letter of credits in the amount equivalent to 80 percent of its loan value, including any and all assigned receivables which may from time to time during the tenor of the loan,” Apollo Global said.
The company also said that that loan is expected to “successfully jump start the commercial and profitable operations” of Apollo Global through JDVC “and pave the way for the realization of increased shareholder value.”