The Manila Electric Company (Meralco) is talking with at least two banks for an P11-billion refinancing plan in the remaining months of the year.

Meralco treasurer Rafael Andrada said they are now evaluating the proposal from these two banks noting that “there are a couple of proposals from banks but I am not yet satisfied with their offer.”

Andrada said that if they would get the appropriate interest rates, they would raise the entire P11 billion that they need to refinance the company’s maturing obligations.

But he said they may also raise the refinancing requirement on a piece meal basis or as opportunity comes in.

“If there is a good offer to raise the entire amount, we will consider. If we will raise the P11 billion, it is most likely to be a syndicated loan. Or we can do it little by little,” he said.

He said whether it would be on a small or the entire amount, they hope to clinch another refinancing scheme anytime soon. “Hopefully within this year,” he said.

Last week, Meralco signed a P3-billion five-year bilateral term loan agreement with Union Bank of the Philippines.

Bulk or P2.5 billion would be used to refinance syndicated loans maturing in January 2010 while the remaining P500 million would be utilized as a general fund.

According to Andrada, they had initially eyed to raise only P2.5 billion but UnionBank offered P3 billion.

This year, Meralco is scheduled to pay P3 billion on principal and interest for their P12-billion restructured loan secured in 2006.

Meralco’s total debts dropped by 28 percent to P16.04 billion as of first quarter of 2009 from P22.37 billion in the same period in 2008.