Ty group gets P7-B loan for Toledo coal plant
MANILA, Philippines - A consortium of banks granted a P7 billion loan facility to Toledo Power Company (TPC), a subsidiary of tycoon George Ty's Global Business Power Corp., to finance the expansion of its 82-megawatt (MW) clean coal-fired power plant in Toledo City, Cebu.
The proceeds from the loan represents 70% of the P10.175 billion total cost for the project. In a statement sent to the PSE on Friday, March 8, the company announced that it plans on raising the remaining 30% through equity.
The expansion project will allow Toledo Power to supply power to Carmen Copper Corp. by December 26, 2014. Carmen Copper's power needs will increase due to its mining expansion. Carmen Copper's electricity power purchasing agreement with TPC is meant to address its load requirement hike from 40MW to 60 MW.
The consortium of local banks include Bank of the Philippine Islands (BPI), Chinabank, Eastwest Bank, Land Bank, RCBC, Philam Life, UnionBank and United Coconut Planters Bank.
First Metro Investment Corp. served as the lead arranger of the loan.
Toledo Power has tapped Formosa Heavy Industries to construct the new plant. Toledo owns and operates a 40MW diesel-fired power in Carmen, Toledo City and a 60 MW coal-fired power plant in Sangi, Toledo City. - Rappler.com