Palm Concepcion Power Corp. is taking P6 billion worth of loans from Asia United Bank Corp. (AUB) and China Banking Corp. (ChinaBank) to partly fund the construction and operation of a 135 megawatt (MW) power plant in Concepcion, Iloilo.In a July 19 disclosure to the Philippine Stock Exchange released Monday, A. Brown Company Inc. noted that Palm Concepcion already signed separate loan agreements with Asia United and China Bank.
Palm Concepcion is a joint venture between A. Brown subsidiary Palm Thermal Consolidated Holdings Corp. and Jin Navitas Resource Inc. of the Rebisco Group.
According to A. Brown, Palm Concepcion will specifically use the loan proceeds to fund the engineering, procurement, construction and financing costs of the power plant, which is expected to start operating by mid-2016.
Palm Thermal and Jin Navitas has tapped NLSC as the engineering, procurement and construction contractor for the Iloilo power plant. NLSC is a consortium of First Northeast Electric Power Engineering Corp. of China, Liaoning Electric Power Survey & Design Institute, and Shenyang Electric Power Design Institute Co. Ltd.
BDO Capital & Investment Corp., the investment arm of the Sy Group of Companies, was the lead arranger and sole bookrunner for the term loan facilities, the disclosure noted. — VS, GMA News
