Meralco plans $234-M loan for debt refinancing
Reuters | 10/11/2009 5:46 PM
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MANILA - Top Philippine power distributor Manila Electric Co (Meralco) is planning to raise P11 billion ($234 million) from various lenders this year to refinance maturing obligations, a company official said at the weekend.
Meralco treasurer Rafael Andrada said the company was considering a syndicated loan, but it was also studying possibly raising its financing requirement in tranches.
Andrada said the company was evaluating proposals from at least two banks.
"If there is a good offer to raise the entire amount, we will consider," Andrada told reporters. "If we will raise the 11 billion pesos, it will most likely be through a syndicated loan. Or we can do it little by little."
"Hopefully (we can do it) within this year," Andrada said.
Meralco, owned by food-to-power conglomerate San Miguel Corp and companies affiliated with the country's most valuable firm, Philippine Long Distance Telephone Co, expects a near four-fold surge in its 2009 net income.
It secured approval from regulators in April to raise power tariffs by up to 27 percent, its first hike since 2003.
abs-cbnNEWS.com is the online news department of ABS-CBN Interactive Inc., a subsidiary of ABS-CBN Broadcasting Corp. ABS-CBN and Meralco are both part of the Lopez Group of Companies.
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