Suweco securing P4-B loan

MANILA, Philippines - Renewable energy company Sunwest Water and Electric Co. Inc. (Suweco) hopes to conclude a P4-billion syndicated loan facility within the first semester of the year.

The P4-billion loan would finance four hydropower projects that would have a total capacity of 31.9 megawatts and is slated for completion in 2014 and 2016, Suweco president Jose Silvestre Natividad yesterday said.

The four hydro power plants are the Penablanca-Cayagan with 6.0 MW, Libacao-Aklan with 15 MW, Bansud-Mindoro with 1.5 MW and Bugasong-Antique with 9.5 MW.

The projects are expected to generate 138.89GWH annually, Natividad said.

The company has started preparatory activities such as construction of access roads to the hydro power plants, he also said.

Suweco hopes to complete the development and construction of the Penablanca-Cagayan, Libacao-Aklan, and Bugasong-Antique projects in the third and fourth quarters of 2016 while that of Bansud-Mindoro would be in the third quarter of 2014, Natividad said.

Suweco has appointed the Investment & Capital Corporation of the Philippines (ICCP) as lead arranger of the financing deal, which would support the construction of the four projects.

ICCP president and chief operating officer Conrado A. Gloria Jr. said that as lead arranger they hope to raise P4 billion, which would fund 70 percent of the total project cost.

“As the lead arranger, ICCP structures the terms of the project financing and organizes the orderly marketing amongst a syndicate of universal and commercial banks. We aim to raise P4 billion which represents 70 percent of the project cost of the four hydro projects.  To effectively carry out its role, ICCP draws on its extensive experience and track record in the local debt capital market,” he said.

Natividad said Suweco chose ICCP as its partner in developing and pursuing innovative road maps for emerging renewable energy companies like SUWECO.

“We are very comfortable with our partnership with ICCP, a leading independent investment bank in our country today,” he said.