Meralco issues P2.5-B more debt notes

MANILA, Philippines - Power utility firm Manila Electric Co. (Meralco) has issued another P2.5 billion worth of debt notes.

In a disclosure to the Philippine Stock Exchange, Meralco said it has signed a seven-year term loan agreement with Philippine National Bank.

Proceeds from the loan will be used for general corporate requirements, Meralco said.

Meralco the other day issued a P5 billion note facility agreement with First Metro Investment Corp.

Meralco said it will use the proceeds of the fixed rate notes due 2015 and 2016 to refinance existing debt obligations while a portion will fund corporate requirements.

Last month, Meralco also raised P4.8 billion worth of fixed rate notes to partly fund its capital expenses.

The issuance was handled by BPI Capital Corp. as issue manager and book runner.

Last October, Meralco chief finance officer Betty Sy-Yap said the company plans to tap the financial market as prevailing low interest rates give them better opportunities to raise funds.

“Interest rates are very low, there’s so much liquidity in the banking system today and I think the confidence of investors in the Philippine business environment allows that,” Sy-Yap said.

The power distribution firm has over 4.5 million customers in its franchise area.

Meralco is currently owned by Philippine Long Distance Co. (PLDT,) San Miguel Corp., First Philippine Holdings and other minority shareholders.