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State-run Power Sector Assets and Liabilities Management Corp. has
prepaid the three yen-denominated loans of the National Power Corp.
with the Japan Bank for International Cooperation-Overseas Economic
Cooperation Fund (JBIC-OECF) worth a combined $174 million,
consisting of the principal and the accrued interest of $26,000.
Two of the loans were originally set to mature
in 2027 and the rest in 2025. Napocor secured the loans in 1995 and
1997 to finance a number of the power firm’s transmission
projects.
Manuel Marcos M. Villalon 2nd, manager of the
Loan Administration Division of PSALM’s Treasury Department, said
the prepayment improves Napocor’s liability profile and diminishes
the state-owned power firm’s exposure to foreign currency risks.
It will also enable Napocor to save on interest payments and
guarantee fees that could be used to prepay its other loans.
-- Euan Paulo C. Añonuevo
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