South Luzon Thermal Energy

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The South Luzon Thermal Energy company was set up to to fund the construction of a 135 MW power project in Calaca, Batangas province, The Philippines. 135 MW project was based on Circulating Fluidized Bed (CFB) technology that uses solid fuels, such as coal or biomass, to generate energy while emitting low levels of sulfur. Project company was the South Luzon Energy Corporation, which is a 50-50 joint venture between the Ayala Group and Phinma Group's Trans-Asia Oil and Energy Development Corporation. In a separate disclosure to the Philippine Stock Exchange, the company announced that it had also signed a power purchase agreement with Trans-Asia for the purchase of the generated output of the 135MW Calaca clean coal plant for 15 years. Financial close was reached in October 2011. Total project cost was US$ 260 million (Philippine Peso 12 billion) project. Debt of US$ 195 million (PP 9 billion) was provided by three local banks Banco de Oro UniBank, Security Bank Corporation, and Rizal Commercial Banking Corporation. The remainder provided as equity by the project sponsor company. In March 2012, the developer reached financial closure on the expansion of the project to 2x 135MW. Project cost of the expansion was US$425 million, of which US$ 268 million was debt - provided by BDO Capital & Investment, Banco de Oro Universal Bank, China Banking Corporation, Bank of Philippine Islands. Construction cost overruns were to be covered by equity or subordinated loans. The financing information is different from description because it is updated according to IJ global in 2017. https://ijglobal.com/data/transaction/22965/south-luzon-thermal-energy-135mw