AES Philippines refinances $500M non-recourse debt from local banks-A A +A
Wednesday, February 13, 2013
AES Philippines, a subsidiary of The AES Corporation (AES: NYSE), announced that it has closed a refinancing of its outstanding $500 million long-term non-recourse debt facility from a consortium of local banks in the Philippines, including Bank of the Philippine Islands (BPI), Rizal Commercial Banking Corporation (RCBC), Philippine National Bank (PNB), and Security Bank.
"This long-term re-financing is another testament to the strong fundamentals of our business in the Philippines. It helped us to extend the average debt life, lower the interest expense and amend covenants to increase financial flexibility," said Andy Horrocks, AES Philippines chief executive officer.
"With the potential expansion of our successful Masinloc facility, we see an opportunity to contribute to economic growth, whilst garnering better business prospects through mutually beneficial partnerships with trusted local banks. We are grateful for the support of the local banks who have shown their confidence in our business, which continues to benefit from overall economic and electricity demand growth in the country," Horrocks.
During the signing ceremonies, BPI president Mr. Aurelio Montinola III explained that having local banks involved in this deal is a testimony to the improved banking industry of the country.
"A couple of years ago, deals involving foreign currencies automatically meant having to deal with international banks; more so considering the amount of the deal - $500,000,000," said Montinola. "This is truly a feat for all of us, and we are proud to be part of this."
AES Philippines is the owner and operator of the successfully rehabilitated Masinloc Power Facility.
In April 2008, AES expanded into the Philippines, completing the $930 million purchase and transfer of assets of the 600 MW Masinloc coal-fired thermal power plant, now Masinloc Power Partners Co. Ltd., located in the Zambales Province in Luzon.
This acquisition is a key component of AES' strategy to invest in areas where there is a significant need for new capacity and offers the company an excellent entry point into the growing Philippine economy.
Since the rehabilitation in 2008, Masinloc has increased its energy production by 31 percent, and has been a dependable source for the Luzon power grid. (PR)