Vivant Corp., a power-based holding firm of the Garcia-Escano family of Cebu, has signed an agreement that allows it to inject capital into the power generation projects of independent power producer (IPP) Mindanao Energy Systems Inc. (Minergy).
A disclosure to the Philippine Stock Exchange on Wednesday showed that Vivant Integrated Generation Corp. (VIGC), a unit of Vivant Energy Corp., has signed a memorandum of agreement with Minergy, which will involve possible equity investments by VIGC in Minergy’s future power generation projects. Vivant Energy is a wholly owned subsidiary of Vivant Corp.
Minergy is an IPP that was established in 1992 to address the crippling power supply crisis in Mindanao. The company is the first IPP in the region to sell directly to a private distribution utility, particularly to the Cagayan Electric Power and Light Co. Inc.
To bankroll its power generation investments, Vivant Corp. has raised about P3 billion from a fixed-rate note issue, to which several local banks subscribed.
According to the company, the note offering was fully subscribed to by a consortium of local banks composed of China Banking Corp., Development Bank of the Philippines, Metropolitan Bank and Trust Co., Philippine Savings Bank, Rizal Commercial Banking Corp. and Robinsons Bank Corp.