Aboitiz Power Corp. said Monday unit SN Aboitiz Power-Magat Inc. secured a P19-billion bank loan to refinance loans and fund other corporate expenses.
Aboitiz Power said in a disclosure to the stock exchange it signed the notes agreement with Bank of the Philippine Islands and China Banking Corp. as initial noteholders for the issuance of fixed-rate corporate notes amounting to P19 billion.
SNAP Magat also appointed BPI, acting through its asset management and trust group, as facility agent and BPI Capital Corp. as mandated lead arranger and bookrunner. China Bank Capital Corp. acted as joint lead arranger for the transaction.
“The proceeds of the notes will be used by SNAP Magat to, among others, repay its existing loans, finance its recapitalization and fund other general corporate purposes,” Aboitiz Power said.
SNAP Magat is a joint venture between Aboitiz Power and SN Power AS of Norway and is the owner and operator of the 360-megawatt Magat hydroelectric power plant located at the border of Ramon, Isabela and Alfonso Lista, Ifugao.
SNAP Magat is also developing the 8.5-MW run-of-river Maris South Canal Hydroelectric Power Plant in Barangay Ambatali, Ramon, Isabela.
The Maris project aims to generate additional electricity for the Luzon grid by utilizing the irrigation flow from Maris Reservoir into Maris Main (South) Diversion Canal.
The project is expected to be completed in November 2017, with an estimated project cost of $47.1 million.
It is also covered by a memorandum of agreement with the National Irrigation Administration, the government agency that owns and operates Magat dam and Maris re-regulating dam.
The plant will use the same irrigation water that is released from the Maris Reservoir for the Maris Main (South) Diversion Canal and will not affect the current irrigation water supply.
SN Aboitiz also owns the 125.8-MW Binga and 104-MW Ambuklao hydro power plants. The plants were acquired from the government.
SN Aboitiz won in the bidding of the Ambuklao-Binga bidding with its $325-million offer. It also won the bid for the Magat hydro power plant by offering $530 million.