Raslag approves P1.45-B in new debt to fund Raslag IV

Raslag [ASLAG 1.53 0.7%; 102% avgVol] [link] disclosed that its board of directors voted to approve P1.45 billion in new loans from BPI to finance the land acquisition, development, and construction of its Raslag IV Solar Project in Pampanga. Raslag IV is a 35 MW solar project.
 

MB BOTTOM-LINE

This is a fairly straight-forward disclosure and debt transaction.

Going to banks to borrow money is a fundamental part of the power generation business.

ASLAG didn’t disclose the rates that it was able to negotiate for these loans, but it would love to have the time to really dig into the project financials to see how the jump in rates affects ASLAG’s anticipated payback period for projects like this.

The higher rates do eat away at the profitability of a project when it is financed in this way, but I don’t have a good feel for the magnitude of the bite.

Is it just a nibble, or is it a chomp? 

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