SARANGANI ENERGY Corp. has secured a P10.5-billion syndicated loan that it will use to help finance the construction of the second 105-megawatt (MW) unit of its 210-MW coal-fired power plant in Maasim, Sarangani province, its parent firm said.
In a disclosure, Alsons Consolidated Resources, Inc. said the loan has a 13.5-year tenor including a 3.5-year grace period on principal repayment.
The loan agreement has been signed by Sarangani Energy and a consortium of local banks, namely BDO Universal Bank, Asia United Bank (AUB), Rizal Commercial Banking Corp., United Coconut Planters Bank (UCPB), Philippine Business Bank, China Bank Savings, and Robinsons Bank Corp. The joint lead arrangers for the loan are BDO Capital and Investment Corp., RCBC Capital Corp., AUB and UCPB.
Sarangani Energy’s first 105 MW section began commercial operations in April of 2016 and provides baseload power to more than three million people in Sarangani province, General Santos City, Iligan City, Compostela Valley, Agusan del Norte, Agusan del Sur and other major population centers of Mindanao.
Construction of the plant’s second 105-MW section began in January this year, with target completion date in the first half of 2019. The unit is expected to serve three million residents of South Cotabato, Davao del Sur, Zamboanga del Norte, Zamboanga del Sur, Cagayan de Oro City and other key areas of Mindanao.
The Sarangani power plant, which is expected to cost close to $600 million, is the single largest investment in province and the entire Region 12, Alsons said.
Alsons, which claims to be the first independent power producer in Mindanao, holds a 75% equity in Sarangani Energy. Toyota Tsusho Corp., the trading company of the Toyota group, owns 25%.
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