The Department of Energy (DOE) is asking Power Sector Assets and Liabilities Management Corp. (PSALM) to consider issuing peso denominated bonds for its fund raising activity slated next year.
"We were talking about PSALM situation... exploring how to be more efficient in borrowing if its throughput borrowing, what denominations to borrow, do we continue to borrow in US dollars or do we borrow Philippine peso," Energy Secretary Jose Rene Almendras told reporters.
Almendras said the department is coordinating with the Finance Secretary Cesar Purisima and PSALM president Emmanuel Ledesma regarding PSALM's planned onduct of its future fund raising activities.
"With the successful launch of the peso bonds, I was asking PSALM to consider that you might want to raise next year's fund raising in peso denomination. Hopefully they will consider that," Energy Secretary Jose Rene Almendras told reporters.
PSALM listed its P30-billion retail bonds at the Philippine Dealing and Exchange Corp. in April.
Finance Undersecretary Jeremias Paul said in August that PSALM may no longer have to resort to borrowings this year.
“I think they're already fully funded. If ever they're going to do it, it might be for next year but not this year,†the Finance official said.
“They're fully funded. Unless there's an opportunity, so it will be more of opportunistic borrowing for liability management purposes,†Paul said.
PSALM, created under Republic Act No. 9136, the Electric Power Industry Reform Act of 2001 is mandated to manage the privatization of the state's power assets and to handle the liabilities of National Power Corp (Napocor).
PSALM incurred borrowings amounting to US$ 2.2 billion in 2009 and P30 billion in April to address Napocor’s debts that would mature in 2009 and 2010.
PSALM is scheduled to settle a total amount of US$ 4.5 billion in maturing obligations, including interest from 2009 to 2011.
“I prefer that they really focus on the universal charge, which Energy Regulatory Commission has yet to approve. I don't want them to incur more loans,†the official said.
PSALM has a pending petition with the ERC to recover about P470.8 billion worth of stranded debts and P22 billion stranded contract costs of the Napocor.
PSALM proposed to recover the P471 billion stranded debts by charging electricity consumers 30 centavos per kWh for 17 years or 22.5 centavos per kWh for 25 years.
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