PhP 2.40 Billion Project Loan Facility for Maibarara Geothermal, Inc.
October 4, 2011
Maibarara Geothermal, Inc. (MGI) which holds the Department of Energy (DOE) service contract for the Maibarara geothermal field in Sto Tomas, Batangas signed on Sept. 26, 2011 a Php 2.40 Billion project loan facility with lenders Rizal Commercial Banking Corp. (RCBC) and Bank of the Philippine Islands (BPI). The loan is for Php 2.40 Billion and payable in 10 years. RCBC Capital is loan issue manager and lead arranger, BPI Capital is joint lead arranger, and RCBC Trust is loan facility agent, security trustee, and accounts trustee.
MGI is the joint-venture company owned by PetroGreen Energy Corp. (65%), the wholly-owned subsidiary of PetroEnergy Resources Corp., Trans-Asia Oil (25%), and the state-owned PNOC Renewables Corp. (10%).
The loan will be used to fund the construction of the steamfield pipeline system, the power plant, and related transmission connection. The 20 MW geothermal facility is intended to be put into commercial operation by the late 2013.
DOE Undersecretary Jose M. Layug, Jr. declared that “The 20 MW Maibarara geothermal project holds the distinction of being the first renewable energy (RE) project fully initiated under the 2008 Renewable Energy Law and the first geothermal service contract awarded during the 2009 DOE bidding round to reach this milestone of financial closing.” Undersecretary Layug also said that the participation of two of the country’s top commercial banks testifies not only to the public-private parntership nature of the Maibarara geothermal power project but also to the investment and growth potential of the country’s RE industry.
MGI President Francisco G. Delfin Jr. said “MGI is proud to have RCBC and BPI as part of its growing network of partners in the Maibarara geothermal power project.” He added that the loan demonstrates lenders’ belief in the commercial viability of the project as well as their regard for MGI’s technical, managerial, and corporate strengths.