Napocor may scrap additional bond float – Camacho

The National Power Corp. (Napocor) may forego one of its planned bond floats if it can raise $750 million from its ongoing international bond issuance.

"If Napocor could generate as much from the ongoing bond issue, then it would have a flexibility and/or fallback in case the other planned bond flotation would not push through," Finance Secretary and Napocor chairman Jose Isidro Camacho said in an interview.

Napocor needs some $1.2 billion for 2003. So far, it was able to raise $200 million from a private placement early this year.

Napocor is also planning to float some $250-million worth of bonds to be backed by Overseas Private Investment Corp. (OPIC) and another $250 million to be partially-guaranteed by the Asian Development Bank.

The finance chief said Napocor could either forego the ADB or the OPIC bond float "if it could raise the maximum $750 million from the current borrowing exercise.

Power Sector Assets and Liabilities Management Corp. (PSALM) decided to proceed with the $750-million vanilla bonds after facing delays and difficulties in securing various approvals for the ADB and OPIC-backed borrowings. PSALM, under Republic Act 9136, will manage the finances of Napocor. It is also in-charge of the privatization of the power firm.

ADB country director Tomas Crouch earlier said they need to see "concrete progress" in the privatization of the country’s transmission assets before giving its go signal for the $250-million bond float.

In a separate interview, PSALM president Edgardo del Fonso said, they have not secured the approval of various government agencies for the OPIC-backed borrowing.

Del Fonso earlier said they would just proceed with the borrowing scheme which had secured the green light from government authorities.