Pacific Activated Carbon secures $6.3-M loan

Pacific Activated Carbon Co. Inc. (PACCO) recently secured a $6.3-million loan from the German finance institution DEG ( Deutsche Investition und Entwicklungsgesellschaft mbH) to expand and rehabilitate its operations.

According to Herman Montenegro, president of PACCO, the DEG loan has also enabled PACCO to restructure its P550-million short-term loans with local banks into a medium-term seven-year loan with a one-year grace period on principal repayments.

In a press conference, Montenegro said that PACCO has embarked on a rehabilitation program to improve the production of activated carbon.

The rehabilitation program had begun last year and is scheduled to be completed by the end of October this year.

In fact, Montenegro said, 75 percent of the rehabilitation of PACCO will be completed by July 30 this year.

PACCO is a 30-year-old Board of Investments (BOI) registered firm that exports activated carbon from coconut shell charcoal. Activated carbon is used for filtration.

PACCO uses 100-percent indigenous local material without any imported component.

Following the completion of PACCO’s rehabilitation this year, Montenegro disclose, the company plans to list at least 20 percent of its shares in the dollar board of the Philippine stock market next year to raise around $8 million.

Part of the projected listing proceeds, Montenegro said, would be used to retire about 40 percent of PACCO’s total domestic debt of P850 million.

PACCO has engaged American Orient Capital Partners Limited (AO Capital) as its adviser for its planned listing next year.

Aside from listing in the Philippine Stock Exchange (PSE), Montenegro said, it is also interested in listing in other foreign stock exchanges.

In fact, the Singapore stock exchange had expressed interest in listing PACCO.

PACCO is 100 percent owned by the Montenegro family.

The company’s plant is located in Mindanao.

PACCO last year posted revenues amounting to only P500 million, but following its rehabilitation this year expects to improve its revenue at the end of 2005 to $12 million and by 2006 to between $20 million to $24 million.