P6B in loans for Iloilo coal plant OKd

Palm Concepcion Power Corp. (PCPC) signed term loan facility agreements worth a total of P6 billion with two local banks to finance the construction and operation of a 135-megawatt coal-fired power plant in Concepcion, Iloilo.

The loan facilities were secured from Asia United Bank Corp. and China Banking Corp.

PCPC is a joint venture between A. Brown subsidiary Palm Thermal Consolidated Holdings Corp. and Jin Navitas Resource Inc., which is led by Rebisco treasurer and AUB chair Jacinto Ng Jr.

PCPC, in a disclosure to the Philippine Stock Exchange, said the proceeds of the term loan facilities would be used to partially cover the engineering, procurement, construction and financing costs of the Iloilo power project under an engineering, procurement and construction contract.

The project, which was estimated to cost P12.5 billion, is expected to be completed in early 2016. It is seen to help meet the rise in power requirements of the Visayas region.

BDO Capital & Investment Corp.  served as the lead arranger and sole bookrunner for the term loan facilities.

The Concepcion project includes the construction of two 135-MW power generation plants, starting with one unit that will use coal as primary fuel and the technology called Circulating Fluidized Bed Combustion (CFBC).

Ayala-led AC Energy Holdings Inc. (ACEHI) was originally part of the PCPC venture but pulled out of the project in early May by selling its interest to Palm Thermal Consolidated Holdings Corp, a wholly owned unit of A Brown.

“The sale by ACEHI is a result of its strategic decision to focus on other power projects imminent in its development pipeline,” said John Eric T. Francia, Ayala managing director and ACEHI president, in a disclosure to the PSE.