Aboitiz unit taps P24-B loan for Davao plant

MANILA, Philippines - Therma South Inc., a subsidiary of Aboitiz Power Corp., is  borrowing P24 billion to finance the construction of a coal-fired power generation facility in Davao.

In a disclosure to the Philippine Stock Exchange yesterday,  Aboitiz Power said Therma South has signed an omnibus agreement with a  consortium of lender-banks for loans and credit accommodations  of up to P24 billion.   

“The proceeds of the loan will be used to finance the construction and  operation of Therma South’s 2x150-megawatt circulating fluidized-bed  coal-fired electric power generation facility located in Davao City  and Davao del Sur,” AboitizPower said.   

Therma South has tapped BDO Capital & Investment Corp. as issue  manager and lead arranger. It also appointed BDO Unibank Inc.-Trust  and Investments Group as trustee and facility agent.   

Therma South president and chief operating officer Benjamin A. Cariaso  Jr. said they are on track to complete the project by early  2015.   

Local leaders are counting on the completion of Therma South’s power  plant, considering it as a solution to the current power crunch in  Mindanao.   

Officials said Therma South is part of AboitizPower’s P35-billion plan to provide additional capacity to solve the Mindanao  power crisis.     

In February, AboitizPower, together with its partners, said  it was pouring in P85 billion in the next four years to expand its  power business.   

AboitizPower said the investment would translate to roughly 1,400  to 1,500 MW of additional capacity.