PNOC-EDC set to prepay $75-M loan

PNOC-Energy Development Corp., a unit of state-owned Philippine National Oil Co., will prepay its $75-million loan after holding a successful initial public offering (IPO) last December.

In an interview, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo said the Monetary Board has approved the prepayment during its weekly meeting held last Thursday.

The original financing was for $90 million and was arranged by a consortium of banks, namely the Bank of Scotia, Asia Limited, Barclays Capital, BDO Capital and Investment Corp., BNP Pariba and ING Bank.

Guinigundo said the outstanding loan balance is only $72.3 million. The remaining $2.2 million is for other charges.

Originally, the loan is to mature in 2008 but PNOC-EDC would like to settle their obligation by Feb. 21.

When PNOC-EDC shares debuted in the market last month investors gobbled up the shares, pushing the geothermal power producer’s stock price 42 percent higher to P4.55 against its IPO price of P3.20.

PNOC-EDC shares closed yesterday at P5.10 each, down from the previous close of P5.40.

Paul Aquino, president and chief executive officer of PNOC-EDC earlier disclosed that $70 to $90 million of the proceeds will go to debt payment and around $150 million to $200 million will go to the upgrade of the company’s 20-year-old drilling equipment.

According to Aquino, the company raised about P16 billion from the maiden offering of up to 5.2 billion shares to the public. This figure could even go up to as much as P19.2 billion should its lead selling agent, CLSA Exchange Capital, decide to exercise the greenshoe option.

PNOC-EDC accounts for about 60 percent of total installed geothermal energy capacity in the Philippines, supplying fuel to 12 power plants. Its four geothermal fields are located in Leyte, Negros Oriental, Bicol and Cotabato.

Majority or 75 percent of PNOC-EDC’s revenues comes from the sale of electricity while 23 percent is being derived from the sale of steam to power plants operated by the National Power Corp. (Napocor).