Meralco to push through with $250-M bond float after polls

The Manila Electric Co. (Meralco) will push through with its planned dollar bond float after the May 10 elections, a ranking company official said.

"Our plans have not been changed. We will proceed with the plan to issue about $200-million to $250-million worth of bonds after the elections," Meralco president Jesus Francisco said.

The Securities and Exchange Commission (SEC) recently approved the application of the power utility firm to raise its bonded indebtedness by $600 million.

"At the moment, we think we will not use up the entire $600 million. Our finance people believe we will need only about $200 million to $250 million to refinance our maturing short-term and long-term unsecured loans," Francisco said.

This year, Meralco’s short-term maturing obligation amounts to $78 million while its maturing long-term loan amounts to P11 billion.

But Francisco said they would also consider the demand and interest of the market in determining the actual size of the bond offering.

"It will depend on the demand. If we see more interest from the market, then we will issue more than $200 million to $250 million," the Meralco official said.

In its application filed with the SEC, Meralco said the bonds would be used for activities related to the company’s comprehensive debt management program.

The bonds would be issued to lending institutions, equipment suppliers and its other creditors in the Philippines and abroad.