Philippines' Aboitiz prepares for 2 coal-fired projects

Aboitiz Power will secure loans within the year to finance two coal-fired power projects.

It will be worth a combined $1.82 billion.

APC chief financial officer Iker Aboitiz explained that they expected to sign the loan agreement for the 300-megawatt coal plant in Davao by the end of the second quarter.

The total budgeted capital expenditure for the Davao facility, which APC is undertaking through its wholly owned subsidiary Therma South Inc., is $720 million. Of this amount, 75 percent is expected to be funded by nonrecourse financing while the remaining 25 percent will be funded by equity.

APC is also expecting to sign by the middle of the third quarter this year the loan agreement for the $1.1-billion, 600-MW coal plant in Subic, which the company is undertaking with power distributor Manila Electric Co. and Taiwan Cogeneration through a vehicle firm called Redondo Peninsula Energy Inc..

The amount will similarly be funded by 75-percent nonrecourse financing, of which the co-lead arrangers are First Metro, BDO Capital and PNB Capital.

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