Toledo Power secures P7-B loan facility for expansion project

Toledo Power Company (TPC) has secured a P7-billion loan facility from a group of local banks to fund the ongoing construction of its 82 MW clean coal-fired power plant expansion project in Toledo City, Cebu.   The project is intended to supply the electric power requirements of Carmen Copper Corporation beginning December 26, 2014.   Carmen Copper, a subsidiary of Atlas Consolidated Mining and Development Corporation, will need additional electric supply to power its mining expansion undertakings.   From its current load requirement of 40MW, Carmen Copper signed an Electricity Power Purchasing Agreement with TPC, which is a wholly owned subsidiary of Global Business Power Corporation, last June 5, 2012 for its 60MW requirement. The expansion project shall use the same clean coal technology being used in Cebu Energy’s 3x82 MW and Panay Energy’s 2x82MW plant facilities.   Through First Metro Investment Corporation, the lead arranger of the loan, TPC’s loan requirement was 50 percent oversubscribed—a positive indicator of the financing institutions’ strong confidence on the project.   The loan amount represents 70 percent of the P10.175 billion total project cost.  The remaining 30 percent will be financed through equity.   The Omnibus Facility Agreement was signed by a consortium of local financing institutions: Bank of the Philippine Islands, Chinabank, EastWest Bank, Land Bank, Rizal Commercial Banking Corporation, Philam Life, UnionBank and United Coconut Planters Bank. — KBK, GMA News