French investment bankers Natexis and BNP Paribas will extend .6 million (Euro17.5 million) to fund National Power Corp.’s rural electrification program.
The Monetary Board, Bangko Sentral ng Pilipinas’ policy-making arm, approved the mixed credit facility for the electrification service project, BSP Governor Amando M. Tetangco Jr. said.
The 25-year loan will carry an interest rate of 0.4 percent for the larger portion. The other portion of the credit will have a higher interest of 4.12 percent and is good for 12.5 years.
Despite that it is able to borrow from the global markets again, the Napocor relies mainly on government support to maintain financial stability and meet its liquidity requirement.
In the meantime, the DOF will fast track Napocor’s privatization efforts next year, which is estimated to save the state P40 billion annually and would improve its budget deficit.
To pay off maturing debts and bankroll its operations, Napocor raised .5 billion this year last year. Of this amount, 0 million was already raised with the NG reopening of 0-million worth of Philippine bonds that will mature in 2011 and 2014.
Another 0 million was raised through a placement with ING Bank. (LCC)
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