Meralco draws down P7-B Metrobank loan

MANILA, Philippines - Manila Electric Co. (Meralco), the country’s biggest power distributor, has drawn a P7-billion long-term loan from Metropolitan Bank & Trust Co., the main banking arm of Ty-led GT Capital Holdings.

The loan would fund the power company’s capital expenditures and operational requirements for the year, Meralco chief financial officer Betty Siy-Yap told reporters.

“The P7-billion long-term debt which we drew (this March) was for capex and operations,” she said adding that the loan has a term of 10 years.

The company earlier announced it has set aside P15.6 billion for capital expenditures this year to improve and maintain its distribution network.

Aside from the P7-billion loan, Siy-Yap said the company is also set to prepay its P18.5 billion bonds drawn last year.

“It is close to P18 billion (total amount prepayment) from December last year to June this year,” she said.

On Monday, the company announced that its net income was virtually unchanged at P17.2 billion compared to P17.1 billion in 2012.

Officials attributed the slight hike in income to higher energy sales, which increased four percent during the period.

On the other hand, core net income grew 4.7 percent to P17 billion last year from P16.265 billion in 2012, data from the company also showed.

“Consolidated revenues, of which electricity accounts for 99 percent or P294.8 billion, rose to P298.6 billion, five percent better than 2012,” Meralco said.

Meralco chairman Manuel V. Pangilinan said the company is optimistic that business would remain strong this year.

“As the economy sustains its growth momentum, we remain determined to build on our gains and drive performance further in 2014,” he said.