Publicly listed firm Vivant Corporation has firmed up deals on its issuance of P3.0 billion worth of fixed rate corporate notes of which proceeds will bankroll its capital expenditure (capex) requirements.
Tapped as sole arranger for the notes issuance is First Metro Investment Corporation (FMIC); while Metropolitan Bank & Trust Company – Trust Banking Group will be the notes facility agent.
The Garcia-led firm emphasized that the targeted corporate notes issue shall be of two-year and five-year tenors.
“The proceeds from the issuance of the notes will be used to finance capital expenditures for existing assets and investments in power generation and/or water infrastructure projects,” the company said.
It added that cash generated from the capital-raising exercise would be funneled “partly to refinance (its) existing 7-year fixed rate corporate notes maturing in February 2021.”
Company executives previously indicated that the line-up of projects will include greenfield power generating facilities; as well as for its diversification venture in the water sector.
The firm’s targeted installations include those in Puerto Princesa and El Nido, Palawan for aggregate capacity of 30 megawatts; then another 16 megawatts in Marinduque province.
One major power project the company has been advancing is a 23MW facility, the chunk of the capacity of which is covered by a 15-year power supply agreement with Bantayan Island Electric Cooperative (BANELCO) in Cebu.
The power facility, once completed, will supply electricity to three municipalities: Bantayan, Santa Fe and Madrilejos which are all part of the Bantayan island domain.
The Garcia firm also cornered recently a 15-year power supply deal to serve the future requirements of the consumers served by Pampanga II Electric Cooperative; and this will be coupled with a 17.28MW power facility that will be embedded into the power utility’s load network.