AboitizPower unit gets additional financing for Benguet plant

MANILA, Philippines - A unit of AboitizPower Corp. has secured additional funding for the expansion and repair of the Ambuklao-Binga hydroelectric power plants in Benguet.

In a disclosure to the Philippines Stock Exchange yesterday, AboitizPower said SN Aboitiz Power-Benguet Inc. has refinanced the peso loan component of its existing $375-million credit facility obtained from a consortium of domestic and international lenders last August 2008.

“After refinancing, SN Aboitiz Power-Benguet’s credit facility will be up to $436.23 million,” AboitizPower said.

The refinancing was secured from International Finance Corp., Nordic Investment Bank, Bank of the Philippine Islands and BDO Unibank Inc.

Proceeds of the additional credit will be used to partially fund the rehabilitation of the 105-megawatt (MW) Ambuklao Hydroelectric Power Plant (HEPP) and the refurbishment of the 140-MW Binga HEPP, AboitizPower said.

It will also be used to repay existing loans or advances, and for other general corporate purposes, the company added.

SN Aboitiz is a joint venture between AboitizPower and SN Power AS of Norway, which acquired the then 175-MW Ambuklao-Binga HEPP for $325 million through a competitive bidding conducted by the Power Sector Assets and Liabilities Management Corp. in November 2007.