In a press briefing, Meralco chief finance officer Daniel Tagaza said they have been "in discussions with these two foreign private investors with tie-ups with foreign banks."
"We could tap other financial groups for our refinancing needs next year aside from our existing creditors," he said.
Tagaza said Meralco would be depending on its existing creditors for the company’s refinancing requirements this year. "For this year, we are talking with our existing creditors led by Citibank and BPI. But for next year, we would want to have some leverage so we would not depend solely on our existing lenders," he said.
Meralco treasurer Rafael Andrada said they would be paying at least $50 million worth of maturing obligations in the first half of 2004 and another $50 million in the second semester.
Andrada said Meralco is currently seeking the approval of the Energy Regulatory Commission (ERC) for the refinancing of its 2004 debts.
Based on its application, Andrada said they are asking the ERC to allow them options to raise the much-needed funds to finance its maturing obligations for next year. These options include issuing of bonds and other financial instruments and securing straight/syndicated loans.
Meralco has paid the $20 million worth of long-term debt last September and another $24 million due this month. Andrada said there is still about $1-$2 million worth of loans that would be paid before the year ends.
According to Andrada, they are still hopeful of meeting its P1 billion net income target for the year. "We hope we could have a settlement with regulators before the end of the year and fully provide for this P1 billion net income."
In fact, he said Meralco has decided to revise its sales growth target upward this year to 4.3 percent, from 3.2 percent.
"We have seen strength in the third quarter. It seems sustainable", Andrada said.
Tagaza, on the other hand, said the revision in the sales growth projection is forthcoming since the company conducts a review of its financial performance in the middle of each year.
"We have a review of our forecast in the middle of the year. Seeing the strong sales in the third quarter prompted us to raise our sales growth projection, he added.
Total kilowatthour (kWh) sales volume for the third quarter increased by 3.8 percent from last year. Net income for the quarter likewise increased by a strong 104 percent to P574 million from P282 million in the same period last year.