GBP unit gets P11-B loan for expansion

A wholly owned subsidiary of Global Business Power Corporation (GBP) has P11 billion in bank loan for the construction of a 150-MW clean coal-fired power plant as part of its expansion project in Iloilo City.

Panay Energy Development Corp. (PEDC) has signed a 12-year syndicated loan facility, GBP said in a statement.

Once the 150-MW plant starts operations in June 2016, Panay Energy will become the largest power generating facility in the Visayas.

The bank financing was provided by a consortium composed of Bank of the Philippine Islands, China Banking Corp., Land Bank of the Philippines, Rizal Commercial Banking Corp., Philippine National Bank and Philippine American Life and General Insurance Co.

First Metro Investment Corp., the lead arranger of the loan, said PEDC’s loan requirement was oversubscribed by P3.6 billion. Proceeds of the loan represented 70 percent of the P15.6 billion cost of the project. The remaining 30 percent of the project cost will be financed with equity.

GBP EVP Jaime Azurin said the successful closing of the syndicated loan facility would play a significant role in revitalizing Panay’s economy.

GBP said over the past six years, it had secured four loan facilities that were instrumental in shaping the economic growth of the Visayas region.