Power distributor Manila Electric Co. (Meralco) signed on Monday a P5-billion note facility agreement with First Metro Investment Corp. as arranger and bookrunner.
In a disclosure to the Philippine Stock Exchange, Meralco said "proceeds of the fixed rate notes due 2015 and 2016 will be used to refinance existing debt obligations and to fund corporate requirements."
Meralco said the notes will be issued on Dec. 21, 2010.
In early November, the company also signed a P4.8 billion fixed rate notes facility with BPI Capital Corp. as issue manager and book runner.
Proceeds of the fixed rates notes issued by BPI Capital will be used for general corporate purposes.
The 7-and-10 year notes, which were priced at 5.8327 percent and 6.4538 percent, respectively, was issued last Dec. 2.
Meralco chief operating officer Oscar Reyes said proceeds from the notes issue last month will be used to pay the company's maturing debts of almost the same level scheduled this month.
"This is not related to our power generation project. This is for maturing debts," he said.
Meralco chief finance officer Betty Sy-Yap told reporters in October that the distribution firm might take advantage of borrowing opportunities in the domestic and international market due to low interest rates.
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