By Myrna M. Velasco
A power project corporate vehicle of Alsons Consolidated Resources, Inc. will be securing R10.5 billion peso-denominated syndicated loan to bankroll the second phase of its 210-megawatt Sarangani coal-fired power project in Mindanao grid.
The credit facility, it was noted, will be funneled through ACR subsidiary Sarangani Energy Corporation (SEC), the entity building the second 105MW unit of the power project.
“The loan has a 13.5-year tenor including a 3.5-year grace period on principal repayment,” the company has noted in a statement to the media.
The loan agreement had been sealed with a consortium of local banks comprising of the BDO Universal Bank, Asia United Bank, Rizal Commercial Banking Corporation, United Coconut Planters Bank, Philippine Business Bank, China Bank Savings and Robinsons Bank Corporation.
Institutions tapped as joint lead arrangers have been BDO Capital and Investment Corporation, RCBC Capital Corporation, AUB and UCPB.
The second unit’s advancement to construction officially kicked off January this year in ceremonies graced by President Rodrigo Duterte. That also marked the full commercial operation of its first unit with the same 105MW capacity.
The total cost of the project had been pegged at $600 million, but bulk of the capital outlay had already been done, at the construction-to-completion phases of the first generating unit.
When the second unit is set on commercial stream by 2019, ACR noted that this will shore up capacity for customers that already contracted the plant’s capacity – and these end-users are in South Cotabato, Davao del Sur, Zamboanga del Norte, Zamboanga del Sur, Cagayan de Oro City and other key areas of Mindanao.
Project vehicle SEC is majority owned by the Alcantara group with 75-percent equity; while the balance of 25 percent is held by Japanese partner Toyota Tsusho Corporation.
After this venture, the well-anticipated next project focus of the Alcanata group is its planned 105MW San Ramon coal-fired power project in Talisayan, Zamboanga City.