Alsons Consolidated Resources Inc. has signed a P10.5-billion loan agreement with a consortium of seven local banks to fund the expansion of its power plant in Sarangani.
Its subsidiary Sarangani Energy Corp. (SEC) signed a loan agreement with the consortium that has a 13.5-year tenor as well as a 3.5-year grace period on the initial repayment.
The consortium is composed of Asia United Bank (AUB), BDO Universal Bank (BDO), China Bank Savings, Philippine Business Bank, Rizal Commercial Banking Corp. (RCBC), Robinsons Bank Corp. and United Coconut Planters Bank (UCPB).
BDO Capital Investment Corp., RCBC Capital Corp., AUB and UCPB are the joint lead arrangers for the loan.
The power plant costs almost $600 million and is said to be the single largest investment in the province and the entire Region 12.
The loan will be utilized for the ongoing construction of the second 105-megawatt (MW) section of the company’s 210-MW coal-fired baseload power plant in Maasim, Sarangani Province.
The plant’s construction began in January and will be completed in the first half of 2019. Once finished, it will add 105 MW of baseload power to three million residents in Cagayan de Oro City, Davao del Sur, South Cotabato, Zamboanga del Norte, Zamboanga del Sur, and other areas of Mindanao.
The first 105-MW section started commercial operations in April last year and has been supplying baseload power to more than three million residents in Agusan del Norte, Agusan del Sur, Compostela Valley, General Santos City, Iligan City, Sarangani Province and other major population centers in Mindanao.
*Photo from alsonspower.com