South Luzon Thermal Energy Corp. (SLTEC) has secured a P7-billion loan facility with three banks to fund the second phase of expansion of its Calaca power plant.
SLTEC is the joint venture company established by AC Energy Holdings Inc. and Trans-Asia Oil and Energy Development Corp. Both firms are listed at the Philippine Stock Exchange (PSE). Through a disclosure at the PSE, both firms reported that SLTEC signed on Tuesday a P7-billion project loan facility with Banco de Oro Unibank Inc., Security Bank Corp. and Rizal Commercial Banking Corp.
Both firms said in a separate filing with the exchange that the loan will be used to undertake the construction and operation of a 135-megawatt (MW) circulating fluidized bed power plant in Calaca, Batangas. The proceeds of the loan will be used specifically to fund the expansion of the plant’s capacity up to 270 MW. This project is in the second phase of expansion of SLTEC’s Calaca Thermal Power Plant.
Earlier, Trans-Asia said that it entered into a subscription agreements with several investors covering P400-million worth of shares.