Aboitiz unit Therma South borrows P24B for Davao project

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Therma South Inc. (TSI) has secured a P24-billion loan with a group of local banks to fund the construction and operation of its Davao project.

A disclosure to the Philippine Stock Exchange on Wednesday showed that TSI has forged an omnibus agreement with a consortium of lender-banks to obtain loans and credit accommodations of up to P24 billion.

The proceeds of the loan, according to the disclosure, will be used to finance the construction and operation of its two by 150-megawatt (MW) circulating fluidized-bed coal-fired electric power generation facility located in Davao City and Davao del Sur.

BDO Capital and Investment Corp. acted as issue manager and lead arranger, while BDO Unibank Inc.-Trust and Investments Group was appointed as trustee and facility agent.


Last year, Mindanao’s largest distribution utility, Davao Light and Power Co. forged a deal with TSI for 100-MW additional capacity in power supply for Mindanao.

Under the agreement, Davao Light will receive 100-MW additional capacity once the construction of the 300-MW clean coal power plant of TSI in Davao City is completed by June 2015.

Therma South is a wholly owned subsidiary of Aboitiz Power Corp. through Therma Power Inc.

AboitizPower, which targets to be one of the largest power firms in the country, earlier committed to invest as much as P85 billion in the country’s power sector in the next four years.

Of the P85 billion, the firm is looking to spend P35 billion for power projects in Mindanao alone, as it aims to solidify its presence in the region.

Madelaine B. Miraflor

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