Napocor to issue $500-M Yankee bonds in 1st qtr

The National Power Corp. (Napocor) is confident that it can enter the international bond market in the first quarter this year.

Napocor plans to issue 10-year Yankee bonds worth $500 million to finance its capital expenditures for the year 2000 including the retirement of some of its outstanding loans.

"If the market is soft, we will issue $300 million as a first tranche. When the market improves, we could deal the remaining $200 million," said Napocor president Federico E. Puno.

Puno said they have selected Lehman Bros as the lead underwriter with ABN Amro, Merryl Lynch, JP Morgan and Morgan Stanley as co-underwriters.

The original shortlist of 10 financial institutions included Salolom Smith Barney, Warburg Paridas, Chase Manhattan Bank, HSBC or the HongKong Shanghai Banking Corp., and ING Bank.

The financial package is actually a refinancing scheme to raise $500-million in commercial loans and bonds.

Of the projected $500-million required by the government-controlled energy corporation, a $300-million seven-year bond issue will be retired through the issuance of a Yankee bond. The remaining $200-million will be produced through commercial loans to be utilized for its 10-year capital outlay.

Napocor had earlier successfully entered into a Y2-billion (approximately $200 million) loan substitution arrangement with leading creditor Japan Export & Import Bank (Jexim) and pool of creditors.