Metrobank lends P7.5 B for new Cebu power plant

MANILA, Philippines - Metropolitan Bank & Trust Co. (Metrobank) has extended a P7.5 billion loan to Aboitiz-led Therma Visayas Inc. for the construction of a new power plant in Toledo City in Cebu.

Metrobank is the biggest lender among the consortium of 10 banks which extended a total of P31.97-billion loan to the joint venture of Aboitiz Power Corp. and Vivant Corp.

Aside from Metrobank, banks in the consortium are Philippine Savings Bank, Asia United Bank Corp., Bank of the Philippine Islands, BDO Unibank Inc., China Banking Corp., Development Bank of the Philippines, Land Bank of the Philippines, Maybank Philippines Inc., and Security Bank Corp.

Metrobank’s investment banking arm First Metro Investment Corp. served as the transaction’s lead arranger and sole bookrunner.

The plant is expected to be completed and fully operational by the first quarter of 2018, addressing the increasing power demand in the Cebu and Visayas grid.

Of the plant’s expected 300-MW output, 150MW would be utilized by Visayan Electric Company (VECO), 30MW by the Balamban and Mactan Enerzone while the rest by various industrial and commercial customers in the region.

Aboitiz and Vivant aim to address the Visayas region’s growing demand for power, which is expected to grow annually at five percent until 2020.

Core earnings of Metrobank jumped 30 percent to P9.3 billion in the first half on the back of double-digit growth in both loans and deposits, stronger contributions from fee based-income, and improved efficiencies with better cost management.

On the other hand, the bank’s operating expenses were flat at P19.4 billion during the period.