Philippines' Aboitiz to source financing locally for $3.6B power projects

Aboitiz Power will tap the local debt market to fund 75 percent of the its $3.6 billion coal-fired plant projects.

Aboitiz Equity Ventures chief finance officer Stephen Paradies said they hope to close a financing agreement with banks for at least one of the three projects before the end of the year.

Project financing for the three power plants will amount to about $2.7 billion.

Paradies said the balance will be funded by equity adding that they have more than enough cash for this.

The company's 300-megawatt coal-fired power plant will be built in Davao at about $600 million to $650 million, with project financing amounting to $450 million. It will also own 25 percent of a 600 MW coal-fired plant, to be built at about $1.2 billion.

Paradies said they may also have to raise $600 million for the 400MW expansion of its coal-fired power plant in Pagbilao, Quezon.

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