Meralco to issue P20B in bonds

Manila Electric Co., the country’s biggest power distributor, on Monday said it planned to raise up to P20 billion through an offering of peso-denominated, long-term bonds.

The company’s board of directors approved on Monday the plan to issue bonds, the proceeds of which will be used primarily for the refinancing of company debt, Meralco said in its disclosure to the Philippine Stock Exchange yesterday.

No other details, however, were given as to when the company plans to conduct the offering.

As of end June this year, Meralco’s outstanding debt stood at P25.383 billion.

In the same disclosure, Meralco also reported that its board had approved the signing of the power supply agreement with Aboitiz-led Therma Mobile Inc., which will supply up to 234 megawatts of power to the distribution firm.

The term of the power supply agreement will start from the time that it is approved by the Energy Regulatory Commission, up to June 2017.

“Meralco will be filing an application for the approval of the PSA with the ERC immediately upon signing by the parties,” the company added.

Therma Mobile will be supplying the agreed capacity from its four power barges moored at the fish port complex in Navotas City.

The rehabilitation of these bunker C-fired diesel plants were completed only this year, allowing the said power units to generate a combined 242 MW.

In May 2011, Therma Mobile acquired the four units of barge-mounted floating power plants for P2.3 billion.

At that time, the barges had not been operating for five years.