Sarangani Energy Corp. inks P10.5-B syndicated loan with PH local banks

Sarangani Energy Corp. (SEC), signed a P10.5-billion syndicated loan with a consortium of the country's local banks.1 min

Sarangani Energy Corp.

Maasim, Philippines — The arm unit of Alsons Consolidated Resources Inc. (ACR), Sarangani Energy Corp. (SEC), signed a P10.5-billion syndicated loan with a consortium of the country’s local banks.

The accumulated loan will be used to finance the ongoing construction of the second 105-megawatt (MW) section of Sarangani Energy Corporation’s 210-MW coal-fired base-load power plant in Maasim, Sarangani province.

The loan from local banks, which has a 13.5-year course, including a 3.5-year grace period on principal repayment, was inked by the Sarangani Energy Corporation and a consortium of local banking firms, comprised of BDO Universal Bank (BDO), Asia United Bank (AUB), Rizal Commercial Banking Corp. (RCBC), United Coconut Planters Bank (UCPB), Philippine Business Bank, China Bank Savings and Robinsons Bank Corp.

The BDO Capital and Investment Corp., RCBC Capital Corp., AUB and UCPB are the joint lead arrangers for the P10.5-billion loan.

The Sarangani Energy Corp. plant’s first 105-MW section started commercial operations back in April 2016, providing much-needed base-load power to over 3 million citizens residing in Sarangani province, General Santos City and Iligan City, as well as in nearby areas including Compostela Valley, Agusan del Norte, Agusan del Sur and other major population centers in Mindanao.

The construction of the Sarangani Energy plant’s second 105-MW section kicked off in January 2017. Upon its targeted completion in the first half of 2019. The Sarangani Energy Corporation Section 2 is scheduled to chip in another 105 MW of baseload power to benefit an additional 3 million people residing in South Cotabato, Davao del Sur, Zamboanga del Norte, Zamboanga del Sur, Cagayan de Oro City, and other nearby districts in Mindanao.

At a cost of nearly $600 million, the Sarangani Energy Corp. power plant is the single largest investment in Sarangani province and the entire Region 12.

Alsons Consolidated Resources Inc., the publicly listed firm of the Alcantara Group and Mindanao’s first and most experienced independent power producer, currently holds 75- percent equity in Sarangani Energy Corp., with Toyota Tsusho Corp., owning 25-percent.

Aside from Sarangani Energy Corp., the Alsons Consolidated Resources operates three diesel-power energy facilities: the 103-MW Mapalad Power Corp. diesel plant in Iligan City, the 55-MW Southern Philippines Power Corp. facility in Alabel, Sarangani; and the 100-MW power plant of the Western Mindanao Power Corp. in Zamboanga City.

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Ronald Delos Santos
Ronald has been a technology journalist since 2012 and was previously reporting for The Centrio Times. He also covered tech industry news in his first job as a reporter with a local magazine, based in Makati.