MANILA, Philippines --- Roughly P10.9 billion loans of the Manila Electric Company (Meralco) will fall due from this year until 2016, according to company records.
For this year, the utility firm has P2.909 billion worth of loans maturing. The next debt maturities will be for P736 million in 2013; P2.336 billion in 2014; P159 million in 2015; and P4.815 billion in 2016.
From 2016 and onwards, the worth of expiring debts will amount to P11.867 billion. Over the specified period, the scheduled maturing debts would be P22.822 billion.
According to Meralco chief finance officer Betty C. Siy-Yap, they may not need to tap any borrowings to settle maturing obligations because their internal cash generation can still fully cover it.
When the group of tycoon Manuel V. Pangilinan took over the management of Meralco, it has continually posted growth in earnings, topping the P14.9 billion mark last year.
Meralco officials noted that they might consider securing new loans when they reach construction phase for their 600-megawatt coal fired power project in Subic.
They have acquired majority stake last year from what were held by original proponents – the Aboitiz group and a Taiwanese partner.
The company is currently resolving the transmission connection concern for the planned facility, but Meralco is confident that it can still bring the plant to commercial operation by 2015.
The Subic facility is one of the future supply sources identified by Meralco that shall cater to its projected demand growth.
Other power projects are also on its blueprint, including forays on liquefied natural gas-fired facility and a peaking thermal plant.
source: mb.com.ph