BDO Capital arranges P10-billion loan for A. Brown coal project

MANILA, Philippines - BDO Capital & Investment Corp., the investment house of top lender Banco de Oro Unibank, is arranging a P10-billion financing package for A. Brown Co. Inc.’s coal power project in Iloilo.

BDO Capital president Eduardo Francisco told The STAR that they are currently firming up the loan.

“We are working on it,” he said.

He said the 135-megawatt power generation project is a “sound project,” being backed by reputable names in the industry.

Francisco said they have also looked at the details of the project, including the off-taker agreement.

“We have seen the agreement signed by the buyers of the power from the plant and we believe the project would run smoothly,” he said.

The BDO Capital official said they expect to close the financing deal soon.

“It would be soon. Before the end of the year,” he said.

Ayala-owned AC Energy and A. Brown earlier reported that they will jointly build the circulating fluidized bed (CFB) thermal plant in the province of Iloilo at an estimated cost of P12.5 billion.

Specifically, the project will be undertaken by A. Brown subsidiaries Palm Thermal Consolidated Holdings Corp., Palm Concepcion Power Corp. (PCPC) and Panay Consolidated Land Holdings Corp.

The construction of the project is expected to start in the last quarter of this year, with target completion in 2015 when an anticipated tight power supply situation in the Visayas grid occurs.

“The corporation has done all the preliminary work and investments over the past two years, and the project is already in an advanced stage of pre-development.The engineering plans are ready and important regulatory approvals have been secured,” PCPC president Roel Castro earlier said.

Aside from power generation, A. Brown is known for being a premier developer of quality real estate in Northern Mindanao since 1995. It is also engaged in a huge palm plantation project in Mindanao.