Signs $650-M loan deal with group of banks
ABOITIZ Power Corporation (AboitizPower) said on Tuesday that it is buying a stake in two power plants in Bataan for $1.2 billion through its subsidiary Therma Power, Inc. (TPI), which will be financed by a combination of internally generated cash and bank loans.
In this connection, AboitizPower said it has also signed a facility agreement with a group of banks to obtain a loan of up to $650 million to partly finance the acquisition.
The company told the Philippine Stock Exchange (PSE) on Tuesday that its subsidiary Therma Power has finalized the purchase and sale agreements for the acquisition of the partnership interests held by affiliated investment funds of the Blackstone Group L.P., which own indirectly the majority and minority shares in GNPower Mariveles Coal Plant Ltd. Co. (GMCP) and GNPower Dinginin Ltd. Co. (GNPD), respectively.
It said that the completion of the transaction is subject to certain customary conditions, including approvals by the Philippine Competition Commission (PCC) and the Board of Investments (BOI), as may be applicable.
AboitizPower said it filed a notification with the PCC on October 3, 2016.
“The proposed acquisition of the indirect effective interests in GMCP and GNPD is in line with our target to increase our attributable net sellable capacity to 4,000 MW by 2020,” AboitizPower CEO Erramon I. Aboitiz said on Tuesday.
“We consider this acquisition very strategic as it gives us immediate earnings from the operating asset and incremental capacity in the coming years from the plant under construction and its expansion. We are likewise looking forward to the completion of our pipeline projects, which include more baseload capacity as well as renewables,” he said.
“The transaction price of approximately $1.2 billion will be paid upon completion of the transaction and will be subject to certain price adjustments at closing, depending on conditionalities,” the company said.
The price includes the sale of partnership interests in affiliated companies, which will result in a 66.1 percent beneficial ownership interest in GMCP and a 40 percent beneficial ownership interest GNPD.
AboitizPower said the group of banks with which it signed a facility agreement include the Bank of Tokyo-Mitsubishi UFJ, Ltd., DBS Bank Ltd., The Hongkong and Shanghai Banking Corporation (HSBC) Ltd., Maybank Kim Eng Securities Pte. Ltd., Mizuho Bank, Ltd., and Standard Chartered Bank.
GMCP is the owner of the Mariveles subcritical coal-fired power plant, consisting of two units with a total capacity of 604 megawatts (MW), including all associated and auxiliary assets. The plant started operations in 2014.
GNPD is the project company established to develop, finance, design, engineer, construct, complete, maintain, own and operate the proposed supercritical coal-fired power project located also in Bataan.
The GNPD project is currently under development and consists of up to two units with a total capacity of 668 MW, including all associated and ancillary and auxiliary assets. The first GNPD unit is targeting commercial operations in 2019.
Therma Power is the holding company of the Aboitiz Group’s investments in non-renewable energy.
AboitizPower has investments in various thermal and renewable power generating facilities and maintains a balanced mix of energy sources to provide ample and reliable power at competitive rates.