|
ROXAS Holdings Inc. (RHI) disclosed to the Philippine Stock Exchange
on Friday that it took out more loans from local lenders to allow
the group to expand and diversify into biofuels.
The holding company said it signed on Friday
loan agreements for a combined P2 billion, with Bank of the
Philippine Islands (BPI) lending P1 billion, unit BPI Asset
Management and Trust Group another P500 million, and Rizal
Commercial Banking Corp. a further P500 million. Co-borrowers were
RHI affiliates Central Azucarera Don Pedro Inc. (CADP) and Central
Azucarera de la Carlota Inc. (CACI).
The two sugar mills are h wholly owned
subsidiaries of RHI unit CADP Group Corp.
Earlier, the sugar mills signed a P4.69-billion
loan agreement with BDO-EPCI Inc, bringing the group’s total fresh
borrowings to P6.7 billion. “The funds we need would only amount
to about P5.1 billion. We are grateful for the respective
contingencies granted by the three institutions. This is clearly a
testimony to their confidence in our company,” Asuncion Aguilar,
RHI senior vice-president for finance and treasurer, said in a
statement.
According to the executive, P4.7 billion of the
new capital is earmarked for the purchase of one factory equipment
each from the US and Australia, another P1.2 billion for setting up
an ethanol plant, and the rest for refinancing existing debt.
RHI said it is securing its position upon the
entry of low-priced imported sugar into the country by 2010 under
the Association of Southeast Asian Nations (Asean) Free Trade
Agreement. It also wants to take advantage of opportunities brought
about by the Biofuels Act of 2006.
“We envision this expansion program to place
us in a competitive advantage and in the process, maximize value for
our shareholders,” Pedro Roxas, RHI chairman and chief executive,
said.
-- Likha C. Cuevas Miel and Euan Paolo C. Añonuevo
|
