Central bank OKs $435M in loans, equity for Masinloc owner
The central bank, Bangko Sentral ng Pilipinas (BSP), has approved a $435-million fund-raising activity of the local unit of American power firm AES Power Corp., the new owner of recently privatized 600-megawatt coal-fired Masinloc power plant, Inquirer sources in the BSP said.
The amount will be raised through a mix of borrowings and equity infusion.
BSP sources said the policy-making Monetary Board recently approved a $160-million loan for the power plant in Masinloc town in the province of Zambales, northwest of Manila, along with a $275-million equity investment.
The World Bank’s private sector investment arm, International Finance Corp., will provide portion of the loan and the equity to be infused, the sources added.
The BSP is mandated by law to screen all private sector borrowings and register foreign direct investments flowing to the country.
Of the $160-million revolving facility for Masinloc, $96 million will come from Masin Gas AES of Singapore and $13 million will be provided by the IFC. The total amount will be relent to AES’ Masinloc Power Corp. which bought the coal-fired power plant from the government late last year for $930 million.
“Aside from funding part of the purchase, the second (loan) component is earmarked for plant rehabilitation,” a source said.
The revolving facility matures in 18 years, including a six-month grace period, and will be payable semiannually, the source added.
The $160-million loan for Masinloc will be charged against the $3.5-billion ceiling set by the local central bank for new medium-to-long-term foreign loans availed of by resident borrowers in the first quarter of this year.
The sources said the AES group was also raising $275 million in fresh equity for its purchase of the Masinloc power plant, part of which shall likewise be funded by the IFC. By Doris Dumlao - Philippine Daily Inquirer
The amount will be raised through a mix of borrowings and equity infusion.
BSP sources said the policy-making Monetary Board recently approved a $160-million loan for the power plant in Masinloc town in the province of Zambales, northwest of Manila, along with a $275-million equity investment.
The World Bank’s private sector investment arm, International Finance Corp., will provide portion of the loan and the equity to be infused, the sources added.
The BSP is mandated by law to screen all private sector borrowings and register foreign direct investments flowing to the country.
Of the $160-million revolving facility for Masinloc, $96 million will come from Masin Gas AES of Singapore and $13 million will be provided by the IFC. The total amount will be relent to AES’ Masinloc Power Corp. which bought the coal-fired power plant from the government late last year for $930 million.
“Aside from funding part of the purchase, the second (loan) component is earmarked for plant rehabilitation,” a source said.
The revolving facility matures in 18 years, including a six-month grace period, and will be payable semiannually, the source added.
The $160-million loan for Masinloc will be charged against the $3.5-billion ceiling set by the local central bank for new medium-to-long-term foreign loans availed of by resident borrowers in the first quarter of this year.
The sources said the AES group was also raising $275 million in fresh equity for its purchase of the Masinloc power plant, part of which shall likewise be funded by the IFC. By Doris Dumlao - Philippine Daily Inquirer
Labels: ifc, masinloc, power plant, zambales
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