VECO Visayas Electric Company Gets Bank Loans
Visayan Electric Co. (VECO), the country’s second-largest electric distribution utility, has signed a P1.7-billion notes facility with local banks for its capital expenditure program.
VECO, in a statement, said the agreement with the banks was signed last Sept. 30. It tapped Metrobank, China Savings Bank and BPI Asset Management as the lenders in the issue, which was arranged by First Metro Investment Corp. as issue manager and Metrobank as notes facility agent.
“We are very pleased at this issuance which provides working capital at reasonable conditions for Veco’s recurrent capital expenditure. As the economy of Cebu, and the rest of the franchise area grows, so do the capital expenditures of VECO,” said Veco president Dennis Garcia in a statement.
VECO’s capital expenditures historically range at around P500 to P700 million per year. The firm expects to spend capex of about P1.38 billion next year, P815 million in 2012, P575 million in 2013 and P521 million in 2014.
The company said its capex increased from current levels due to its planned purchase of sub-transmission assets and construction of new substations and other improvements required to meet customer growth and ensure continued reliable service.