A Joint Venture Power Plant of the Philippines and Norway Gets Financial Boost

SN Aboitiz Power Inc., a joint venture of the Philippines’s Aboitiz Power Corp. and Norway’s SN Power, has gotten a $380-million loan to help finance the balance of the $530-million purchase price of the government’s 360-megawatt hydropower plant in Magat.
The loan came from International Finance Corp., Nordic Investment Bank, Banco de Oro-EPCI Inc., Bank of the Philippine Islands, China Banking Corp., Development Bank of the Philippines, The Hong Kong and Shanghai Banking Corp. Ltd., Philippine National Bank and Security Bank.
Of the $380-million loan, $160 million represents the dollar component, it said. The peso component is P11.5 billion, it added.
The loan will be used for the Magat plant acquisition and for refinancing a $159-million loan from the conglomerate Aboitiz Equity Ventures and shareholders’ advances, Aboitiz Power said.
SN Aboitiz Power took over operation of the Magat plant in April after remitting $371 million in down payment to the privatization agency Power Sector Assets and Liabilities Management Corp.
It had won the bidding for the plant last year with an offer of $530 million, edging out lone other bidder, First Generation Northern Energy Corp.

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