Aboitiz to raise $900M for coal-fired plants, refinancing

Aboitiz Equity Ventures will rtaise $900 million from debt sales to fund capital expenditure on two coal-fired plants. It also includes the amount need to refinance maturing debt.

According to the statement of Aboitiz & Company chief finance officer Stephen Paradies to Reuters., the company needs US$390 million debt issue to fund a 300MW coal-fired power plant project in Subic Bay. Redondo Peninsula Energy, a Aboitiz Power unit, will develop the Subic project.

For another 300MW coal-fired power plant in Davao, the group intends to raise another $390 million in debt sales with a maturity of 12 years.

Construction on both the power plants is expected to take up to three years.

A separate US$78 million will laos be raised for debt refinancing.