MANILA, Philippines - The local unit of US-based power giant AES Corp. has closed a refinancing of its $500 million long-term non-recourse debt facility from a consortium of local banks.
The consortium, which includes Bank of the Philippine Islands (BPI), Rizal Commercial Banking Corporation (RCBC), Philippine National Bank (PNB), and Security Bank, financed AES Philippines' debt.
"This long-term re-financing is another testament to the strong fundamentals of our business in the Philippines. It helped us to extend the average debt life, lower the interest expense and amend covenants to increase financial flexibility,” said AES Philippines Chief Executive Officer Andy Horrocks.
"With the potential expansion of our successful Masinloc facility, we see an opportunity to contribute to economic growth, whilst garnering better business prospects through mutually beneficial partnerships with trusted local banks. We are grateful for the support of the local banks who have shown their confidence in our business, which continues to benefit from overall economic and electricity demand growth in the country," he added.
BPI President Aurelio Montinola III said the participation of the local banks in the deal shows just how strong the local banking industry is.
"A couple of years ago, deals involving foreign currencies automatically meant having to deal with international banks; more so considering the amount of the deal - $500,000,000... This is truly a feat for all of us, and we are proud to be part of this," he said.
AES Philippines owns and operates the Masinloc coal-fired facility in Zambales. It acquired the facility from the National Power Corp. in 2008.
Since its rehabilitation in 2008, Masinloc has increased its energy production by 31%, and has been a dependable source for the Luzon power grid.
AES Philippines is a subsidiary of The AES Corporation, a Fortune 200 global power company. It provides energy to 27 countries through its diverse portfolio of distribution businesses as well as thermal and renewable generation facilities.