Tuesday, September 18, 2018
  • share this

Ayala group raising funds for 540-MW power plant

/ 01:15 AM December 30, 2014

An Ayala-led consortium has executed the documentary requirements to raise funding for a 540-megawatt coal-fired power plant in Kauswagan, Lanao del Norte, which was estimated to cost $1 billion.

“The plant will help alleviate the tight power supply situation in Mindanao,” Ayala Corp. said in a disclosure to the Philippine Stock Exchange.


It said construction of the plant was set to start in early 2015.

GNPower Kauswagan Ltd. Co., a limited partnership owned by Ayala Corp. subsidiary AC Energy Holdings Inc., signed the definitive documentation along with its partners, Philippine Investment Alliance for Infrastructure (PINAI) Fund and Power Partners Ltd. Co.

“The project is currently underwritten with a combination of debt and equity. We can increase leverage over time,” Eric Francia, head of energy and infrastructure group at Ayala Corp. said in a text message.

The definitive documentation for the financing was needed to commence the phased construction of the 4×135-MW coal-fired power project. The disclosure did not say how much the syndicated loan was but earlier reports suggested that the project cost was worth about $1 billion. Proponents typically cover 30 percent of the cost with equity.

“The debt will be financed by a syndicate of domestic banks with additional debt from international banks,” the disclosure said.

AC expects to reach its goal of operating at least 1,000 megawatts of attributable power generation capacity by 2018, during which it would have deployed $1 billion in equity in a mix of run-of-the-river, wind and coal-fired power plants.

For the Kauswagan project, proponents are expected to infuse $300 million in equity based on a 70 to 30 percent debt to equity mix. It is expected to be operational by 2017.

Ayala will have the majority of the capacity of the Lanao plant.

In 2011, Ayala said it was aiming to develop a power portfolio with 1,000 MW in attributable capacity over a five-year period.


It had so far five projects—two coal-fired projects, two wind farms and one run-of-the-river hydro project.

Read Next
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Ayala group, Business, coal-fired plant, fund raising, GNPower Kauswagan Ltd. Co., power sector
For feedback, complaints, or inquiries, contact us.

Village chief killed in Pangasinan

September 19, 2018 02:14 AM


Darren Criss first Fil-Am to win major Emmy prize

September 19, 2018 02:09 AM


Out-of-the-box acting gig for Josh Groban in ‘Good Cop’

September 19, 2018 12:35 AM

© Copyright 1997-2018 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.