SN Aboitiz Power-Benguet, Inc., a unit of Aboitiz Power Corp. (AboitizPower), secured a bigger credit facility of $436.23 million from its lenders after it refinanced the peso loan component of its existing $375 million loan obtained in August 2008.
In a disclosure to the Philippine Stock Exchange (PSE), Aboitiz Power said that after refinancing, SN Aboitiz Power-Benguet’s credit facility will be up to $436.23 million from the remaining lenders: International Finance Corporation, Nordic Investment Bank, Bank of the Philippine Islands, and BDO Unibank, Inc.
Proceeds of the refinancing will be used to partially fund the rehabilitation of the 105-megawatt (MW) Ambuklao Hydroelectric Power Plant (HEPP) and the refurbishment of the 140-MW Binga HEPP, as well as to repay existing loans or advances, and for other general corporate purposes.
SN Aboitiz Power-Benguet, Inc. is a joint venture between Aboitiz Power Corporation and SN Power AS of Norway which acquired the then 175-MW Ambuklao-Binga HEPP for $325 million through a competitive bidding conducted by the Power Sector Assets and
Liabilities Management Corp. (Psalm) in November 2007.
AboitizPower earlier expressed interest to bid for the privatization of the output of the 210-MW Mindanao coal-fired power plant in Misamis Oriental.
The bidding for the independent power producer administrator (IPPA) contract of the plant has been reset by Psalm to November 25, 2015.
Located in Misamis Oriental, Mindanao Coal is operated by Germany-based Steag State Power Inc. under a 25-year build-operate-transfer (BOT) power purchase agreement scheme until 2031.