SEC approves incorporation of P10-B Semirara mining subsidiary

MANILA, Philippines - The Securities and Exchange Commission (SEC) has approved the incorporation of Southwest Luzon Power Generation Corp., a wholly-owned subsidiary of the coal mining firm Semirara Mining Corp., captilized at P10 billion.

Documents submitted to the SEC show that P3 billion of the P10 billion authorized capital has been subscribed and P750 million paid for.

Southwest Luzon will be Semirara’s investment vehicle for a project that involves the construction of two 150-megawatt coal-fired thermal power plants to be located adjacent to the two 300-MW Batangas coal-fired thermal power plant owned by SEM-Calaca Power Corp.

Semirara has obtained a P14-billion syndicated term loan facility to fund the project. BDO Capital & Investment Corp. was the lead arranger for the loan facility.

The 600-MW Calaca facility is designed to run as a base-load plant using local coal from Semirara Island. Owned 100 percent by Semirara, , the plant started rehabilitation in August 2010 and is targeted for completion by March or April next year.

DMCI Holdings Inc., parent firm of Semirara, won the bidding for the Calaca coal fired facility in July 2009 with its offer of $361.7 million (roughly P17 billion).

The expansion of the power plant is in line with the group’s objective of churning out a total of 1,550 mw of power by 2013, from nothing in 2009.