BDO capital eyes $1-billion portfolio on power projects

MANILA, Philippines - BDO Capital & Investment Corp. (BDO Capital), the investment arm of BDO Unibank Inc. controlled by retail tycoon Henry Sy Sr., is optimistic it could close $1 billion worth of financing in the power sector within the remaining months of the year.

Eduardo Francisco, BDO Capital president, said they expect the financial closure of three major power projects which they are arranging in the second half of the year.

He said the power projects would be located in Luzon and Mindanao.

They also expect to arrange financing for other various projects but he noted that the financing for power projects are the easiest to be executed as these do not pass through bidding processes.

“There are various PPP (public and private partnership) projects but the financial closure may take time and may not happen this year,” he said.

Earlier, BDO Capital arranged some P11.5-billion loan for the 300-megawatt expansion of Calaca power plant of the Consunjis.

Created in December 1998, BDO Capital is a full-service investment house primarily involved in securities underwriting and trading, loan syndication, financial advisory, private placement of debt and equity, project finance, and direct equity investment.

Commencing operations in March 1999, it has a paid-up capital of P300 million. As of June 2007, BDO Capital has over P843 million in capital.

Since its inception, BDO Capital had raised a total of P777.3 billion in equity offerings and debt issues for both the government and private institutions either as issue manager, lead underwriter, arranger, advisor, co-arranger or participating underwriter.

For the period Oct. 1, 2006 to Sept. 30, 2007, BDO Capital as issue manager and lead underwriter cornered 76 percent (P86.8 billion of the total P114.7 billion) of the Philippine equity capital market offerings (IPOs, rights issues and follow-on offerings, ex-preferred shares issuances).