PhilExim gets $15-M ADB loan for relending

The Asian Development Bank (ADB) has released a $15-million loan to the Philippine Export-Import Credit Agency (PhilExim) for relending to the small and medium enterprises (SMEs).

"The loan was part of a $40-million loan package from the Asian Development Bank," PhilExim president and chief executive officer Joel C. Valdes said.

PhilExim, an attached agency of the Department of Finance (DOF), is mandated to promote investments and trade through sovereign and financial guarantees as well as through direct credit, insurance and technical assistance.

The ADB loan has a repayment period of 20 years with a three-year grace period. It also has a deployment schedule of three years from the date of loan approval.

Valdes said the entire $15 million will be lent exclusively to SME exporters.

"That is favorable for SME exporters as they are dealing with US dollars and PhilExim will not have to be concerned with foreign currency covers," Valdes said.

Earlier, the ADB released a $400,000 technical assistance (TA) grant to develop a program to accelerate financing for SMEs. The grant came from the Japan Special Fund.

Meanwhile, PhilExim is awaiting the board’s approval for a number of projects worth a combined $42.9 million (roughly P2.6 billion).

Of this amount, Digitel’s Sun Cellular accounted for the bulk with $40 million.

"It is a three-year program actually amounting to $120 million for its expansion program," Valdes said.

Software Ventures International Corp. is seeking an $8- million loan for its capital expenditures while EEI Corp. is looking for a $1.2-million performance bond.

Earlier, PhilEXIM issued a 100-percent guarantee worth $200 million for Sunpower Philippines Manufacturing Ltd. (SunPower), a US-based company which manufactures solar cells for worldwide distribution.

The amount will be used to finance the construction and commissioning of a wafer fabrication facility. The first phase of the program calls for the construction of the facility, which will make solar cells using imported ingots.