MGI gets P2.4B loan

Maibarara Geothermal Inc. (MGI) has secured a P2.4 billion project loan from two local banks to fund the construction of its 20-megawatt geothermal facility on Mt. Makiling.

MGI—a consortium composed of PetroEnergy Resources Corp., Trans-Asia Oil and Energy Development Corp. and PNOC Renewables Corp.—said the loan deal was signed on Monday with Rizal Commercial Banking Corp. and Bank of the Philippine Islands.

RCBC Capital is the loan issue manager and lead arranger, BPI Capital is the joint lead arranger and RCBC Trust is the loan facility agent, security trustee, and accounts trustee, PetroEnergy told the Philippine Stock Exchange.

MGI president Francisco G. Delfin Jr. said the loan demonstrated the lenders’ belief in the commercial viability of the project and their regard for MGI’s technical, managerial and corporate strengths.

The loan, which is payable in 10 years, will be used to fund mainly the construction of the steam field pipeline system and power plant.

The 20-MW geothermal facility is scheduled to start commercial operation in 2013, PetroEnergy said.—Amy R. Remo