PSALM set to start int’l roadshow for $400-million bond flotation

The Power Sector Assets and Liabilities Management Corp. (PSALM) is planning to kick off the international roadshow for its $400-million US-denominated bond offering on Jan. 23.

"That is a tentative schedule. We have yet to confirm it within this week," PSALM president Edgardo Del Fonso said in an interview.

Del Fonso said the roadshow will probably start in Europe.

"Based on our experience, when the National Government offered Eurobonds, we do the United States last," he said.

He said there are plans to end the roadshow in Hong Kong and New York. "This way, we will be able to sustain the momentum or we already reached the peak when we close," he added.

Proceeds from the offering, he said, would be used to fund the operating expenses of the National Power Corp. (Napocor) for this year. Del Fonso earlier said the Napocor would need about $1 billion for 2002.

PSALM is an entity created under Republic Act No. 9136 to absorb all the assets and liabilities of the state-owned Napocor. It is now transferring the assets of Napocor, a process that is expected to be finished in March this year.

The bond float was originally scheduled in November but was deferred indefinitely due to terrorist attacks on the US.

The PSALM, in fact, has already tapped the US-based Bear Stearns to manage the bond offering.

Napocor had been in dire financial condition since the currency crisis that hit Asia in 1997. Its loan obligations, to date, are placed at more than $6 billion. Last year alone, Napocor lost pegged at P12.9 billion.

Napocor president Jesus N. Alcordo said if the improvement in the power firm’s energy sales will be sustained, it could end 2001 with a lower net loss of P9 billion. – Donnabelle Gatdula