State-guarantor Philippine Export-Import Credit Agency (PhilExim) will provide a $100 million standby facility for infrastructure projects including those in the energy sector, a top company official said.
PhilExim president and chief executive officer Virgilio Angelo told reporters the facility will be part of the tie-up they have forged with various foreign financial institutions.
The $100 million standby facility will actually come from Calyon Bank ($50 million) and Fortis Bank ($50 million).
Calyon was formed from the merger of Crédit Agricole Indosuez and Crédit Lyonnais’ corporate and investment banking division. Backed by the group’s credit ratings and financial solidity, Calyon is now a leading player in financial markets.
Fortis, on the other hand, is a Belgian international provider of banking and insurance services to personal, business and institutional customers. The company delivers a total package of financial products and services through its own high-performance channels and via intermediaries and other partners.
Part of PhilExim’s role, meanwhile, is the implementation of the medium-term public investment plan framework where there are infra projects amounting to P370 billion.
PhilExim, also known as the Trade and Investment Development Corp. of the Philippines (TIDCORP), is a government financial institution attached to the Department of Finance (DOF).
It was established on Jan. 31, 1977 as the Philippine Export and Foreign Loan Guarantee Corp. (Philguarantee) by virtue of Presidential Decree 1080. It was later renamed TIDCORP and granted expanded functions by Republic Act 8494 on Feb. 12, 1998.
Angelo said this is not the first time that PhilExim will be providing loanable funds for energy-related projects.
He said the institution has participated in the financing of $29 million Bangui wind farm project in Ilocos Norte.
Possible projects that could avail of the PhilExim’s facility, he said, could be those on renewable energy.
“Like the wind project that we had helped finance, proponents of bioethanol and biomass projects could also tap this facility,” he said.