BDO-led consortium to lend P5B to P10B to Tanduay

A consortium of banks led by Banco de Oro is set to lend between P5 billion to P10 billion to Tanduay Distillers Inc. for its expansion.

BDO has reportedly invited Rizal Commercial Banking Corp. (RCBC), Equitable-PCI Bank and China Bank to join the consortium.

The loan signing is scheduled for Friday, Feb. 10.

According to banking sources, the loan would be priced at 75 basis points over Mart 1.

Lucio Tan-owned TDI last year acquired control of two distilleries as part of its plans to increase its capacity.

TDI bought controlling stakes in Asian Alcohol Corp. and Absolute Chemicals Inc. for P484.5 million.

TDI now controls 90 percent of Asian Alcohol Corp. and Absolute Chemicals Inc.

TDI said the acquisition of the two distilleries was part of the company’s plan to acquire six distilleries in a span of three to five years.

The acquisition of the remaining four plants would be spread across the next two to three years.

Nestor C. Mendones, TDI vice president and chief finance officer, disclosed that Tanduay actually has no distillery and its plants were merely bottling facilities, thus the reason for the acquisition of the two distilleries.

The new loan may, thus, be used to purchase additional strategic plants.