Monte Oro to raise $300-M for Manila power grid

ABS-CBN News

Posted at Jun 25 2008 10:49 PM | Updated as of Jun 26 2008 06:49 AM

Reuters

The winning bidder for the right to run the Philippines power grid said on Wednesday it planned to raise $300 million through equity and bank financing to fund its share of the first payment for the licence.

Monte Oro Grid Resources Corp was the lead group in a consortium that includes China's State Grid Corp and Calaca High Power Corp.

They won control of the National Transmission Corp (Transco) in December with a $3.95 billion bid, the biggest privatization in the Philippine.

The consortium must pay 25 percent of the price 30 days after it secures a franchise to operate the grid from Congress, Walter Brown president of Monte Oro told reporters on Wednesday.

The balance would have to be paid over 20 years.

Brown, who is also chairman of mining group Philex, said UBS Investment bank had been appointed as Monte Oro's underwriter.

The House of Representatives, currently on recess, has yet to give final approval to a bill granting the Transco franchise to the winning bidder. The upper house also needs to approve the bill.