LED Hedcor Sibulan Inc. (HSI) executed a notes facility agreement with a consortium of note holders for the issuance of fixed rate corporate notes in the amount of up to P4.1 billion.
Aboitiz Power Corporation, together with its wholly owned subsidiary, Aboitiz Renewables, Inc., effectively owns 100 percent interest in Hedcor.
In a disclosure to Philippine Stock Exchange (PSE) on Friday, AboitizPower said that proceeds of the notes issuance will be used, among others, to finance the partial redemption of HSI’s redeemable preferred shares pursuant to its capital management program and for other general corporate purposes.
First Metro Investment Corporation acted as issue manager and bookrunner, while Metropolitan Bank and Trust Company acted as facility and paying agent.
The Sibulan hydroelectric power plants have been generating 42.5 megawatts (MW) of clean and renewable energy for Davao since 2010. The plants are located in Sta. Cruz, Davao del Sur
The first of two cascading plants, Sibulan A Hydro produces 16.3 MW and the water it utilizes is re-used in the Sibulan B Hydro to produce 26.2 MW and the 6.7 MW Tudaya 1 plant.
Employing thousands of local labor, Sibulan A was completed and commissioned on December 26, 2010.
Local residents who are mainly engaged in abaca and fruit farming have since benefitted from the use of 44 kilometers of farm-to-market roads, which were developed as access to the plants.