NPC signs $100m loan

NPC signs $100m loan

MANILA (AFP): State-owned National Power Corporation (NPC) on Saturday signed a US$100-million syndicated loan facility, the Philippine presidential palace said in a statement.

The NPC, the Philippines' main power producer, will use the proceeds of the loan for various generation and transmission projects, many of which are already being implemented, the palace said.

The loan, which has a five year maturity and is fully guaranteed by government, was arranged by JP Morgan Securities Asia. Among the participating banks are Morgan Guaranty Trust Company of New York, Bangkok Bank Public Company Ltd., and Deutsche Bank (Asia) Finance Ltd.

Also involved are the Korean Development Bank, Krung Thai Bank Public Company Ltd. and Fuji Bank.

The interest rate was set at LIBOR plus 1.625 percent, the statement added.

The palace quoted finance officials as saying the loan was arranged before the Mexican currency crisis and had not changed in the last four months, indicating that the lenders have greater confidence that the Philippines will not experience a Mexico-like situation.