THE Bank of the Philippine Islands (BPI), through its investment banking subsidiary, BPI Capital Corp., led a consortium of Philippine banks that raised $525 million to finance the expansion of Masinloc power plant.
In a statement issued Wednesday, BPI noted that the said amount is meant to partially finance AES Philippines’ new 330-megawatt (MW) coal power plant.
The facility follows a $500-million refinancing in 2013, also provided entirely by local banks, in support of the rehabilitation and modernization of the original 600-MW facility in Masinloc, Zambales, it explained.
BPI Capital acted as sole issue coordinator and one of the joint lead arrangers for the transaction.
It said the facility is denominated in US dollars and has a tenor of 15 years, inclusive of an up to four-year grace period during construction and would be made available in fixed and floating interest rate tranches.
The fixed interest rate tranches would be subject to a re-pricing on the eighth year anniversary to set the interest rate for the remaining seven years, it added.
BPI said the power plant is envisioned to supply power to, among others, at least seven electric cooperatives in northern Philippines for 20 years, opening the way for a reduction in electricity rates in the area, it added.
The bank pointed out that the transaction underscores its commitment to finance and pursue projects that create a strong impact on sectors that are vital to the country’s economic growth.