Psalm to borrow $1 billion to pay off Napocor debts
Government-run Power Sector Assets and Liabilities Management Corp. (Psalm) is bent on raising funds to manage and pay off the maturing debts of the National Power Corp. (Napocor).
“Psalm is still continuing [Napocor’s] liability management,” said Energy Secretary Jose Ibazeta.
He added that he is certain that Psalm will pursue Napocor’s liability management even under the Aquino administration.
Ibazeta declined to provide a timeline, but he quickly added that Psalm is set to raise $1 billion either via bank financing or other financial instruments.
“I have always been prepared to tap the financial markets anytime or whenever there is a window of opportunity,” Ibazeta said.
In April, Maria Luz Caminero, Psalm acting president, told reporters that they are planning to undertake a second and third bond issuance to help pay off $3 billion worth of Napocor debts which are maturing this year, out of the outstanding $16.5 billion.
Caminero said, “I think we are looking at several different bond issuances this year which will depend on market conditions.”
She said Psalm has practically raised a third of the maturing debts from the proceeds of a P20-billion retail bond issuance held on April 22 consisting of five- and seven-year maturities.
This particular issue has been oversubscribed by about P10 billion, which gives them the opportunity for another peso-bond issuance of at least P30 billion.
She said the money borrowed from the financial markets will be paid using proceeds of the Napocor asset privatization program and the universal charge collected from power users. BusinessMirror
