NGCP to issue P5-billion fixed rate notes

MANILA, Philippines - Power transmission concessionaire National Grid Corp. of the Philippines (NGCP) will issue P5 billion worth of fixed rate corporate notes to finance its capital expenses, a top company official said.

NGCP president and CEO Henry Sy Jr. said they have signed an agreement with a number of banks for the issuance.

Sy said they have commissioned Standard Chartered Bank (Philippine branch) as lead manager and bookrunner. Other financial institutions tapped as noteholders are Land Bank of the Philippines, Philippine National Bank, ANZ Philippines and BDO Private Bank.

“Our efforts to operate, maintain, expand and further develop the transmission network need to be supported both by technical and financial improvements,” Sy said.

He lauded the banks for their support in  NGCP’s endeavor to raise funds for the improvement of the country’s transmission highway.

“The agreement will strengthen NGCP’s business and financial portfolio - for the success of NGCP’s projects and for the benefit of the customers that it serves,”  he said.

Based on the Transmission Development Plan, NGCP should spend about P10 billion for projects to improve its services to its customers.

NGCP is consists of Monte Oro Grid Resources Corp. which is owned by Sy’s One Taipan Holdings, Calaca High Power Corp. led by Robert Coyuito and technical partner State Grid Corp of China.

The consortium won the concession to operate and manage the country’s transmission highway in a public bidding conducted in December 2007. The group offered $3.95 billion for the contract.

NGCP took over the operations and maintenance of the country’s transmission network from the government in January 2009.