Manila Electric Co. (Meralco), the country’s largest power distributor, has tapped Citigroup for potential offshore bonds sale which the company plans to do to raise funds for its capital expenditure.
In a filing with the Philippine Stock Exchange, Meralco disclosed that it has mandated Citigroup to arrange a series of fixed income investor meetings in Singapore and Hong Kong, which will commence today.
“After going on a roadshow to potential bond investors and should market conditions become favorable thereafter, the company may consider a US Reg S transaction with the amount and tenor to be determined at that time, and the proceeds from said offering shall be intended for capital expenditure purposes,” Meralco said in a separate disclosure to the PSE.
Citigroup is one of the largest international financial services firms. It was previously reported that Meralco has earmarked P95-billion seven-year capital expenditure for the expansion of its distribution business as well as the firming up of its power generation portfolio.
Oscar Reyes, Meralco president and chief executive officer, previously told reporters that the capital expenditure (capex) will require an equity investment of P30 billion from 2013 to 2019.
According to him, Meralco will set aside P65 billion for its distribution utility business for 2013 to 2019, while its investment in power generation may reach as high as P30 billion for the same period.
For this year alone, the company has allocated nearly P13 billion for its capex to ease system losses and pursue power generation projects.