Ayala unit signs financing deal for Lanao coal plant

ABS-CBN News

Posted at Dec 29 2014 02:59 PM | Updated as of Dec 29 2014 11:06 PM

MANILA – The power unit of Ayala Corporation, AC Energy Holdings Inc., and its partners have signed documentation for the financing of a coal-fired power plant in Kauswagan, Lanao del Norte.

“Please be informed that GNPower Kauswagan Ltd. Co., a limited partnership owned by AC Energy Holdings, Inc., a fully-owned subsidiary of Ayala Corporation, the Philippine Investment Alliance for Infrastructure (PINAI) Fund, and Power Partners Ltd. Co., has signed definitive documentation for the financing to commence the phased construction of a 4 x 135MW coal-fired power plant in Kauswagan, Lanao del Norte,” Ayala Corp. said in a disclosure to the stock exchange on Monday.

Ayala said the total cost of the project will be funded by both debt and equity.

“The debt will be financed by a syndicate of domestic banks with additional debt from international banks,” the firm added.

The 540-megawatt coal plant aims to address the tight power supply situation in Mindanao.

The construction of the plant was originally scheduled to begin in the fourth quarter of 2014, but was pushed back to early 2015. The plant is expected to be in full operation by 2017.