PSALM allots P75-B loan proceeds, looks for more funds

The Power Sector Assets and Liabilities Management Corp. (PSALM) said the P75 billion syndicated loan it recently secured from several banks addresses most of its financial obligations this year. To meet the remaining shortfall and future years’ needs, PSALM is looking at several options. “PSALM is exploring various liability management strategies to adequately address this year’s financial requirements," PSALM president and CEO Emmanuel Ledesma Jr. said. Ledesma said PSALM had to raise funds for working capital and debt refinancing after implementation of the asset privatization program was deferred. Operating expenses of the National Transmission Corp. also added to the burdens of the state firm. Financing options Ledesma said PSALM might ask the Energy Regulatory Commission to approve a “universal charge for stranded debts and contract costs." PSALM may also accelerate the collection of receivables from the winning bidders of assets it already privatized. Ledesma said that prepayment and other wa4ys to advance the collection of receivables will be consistent with PSALM’s contracts with the bid winners. Another option available to PSALM, according to the CEO, is the consolidation of its debts with those of other state-owned firms. Use of loan proceeds The PSALM board approved the P75-billion syndicated loan last Feb. 7 and the program to use the loan proceeds. A third of the loan — P25 billion — will settle short-term debts owed to the Land Bank of the Philippines and that fell due on May 19. Another chunk will be used to pay the P18-billion bonds secured in 2004 and due next August. Part of the loan will be for independent power producer debts and other contractual obligations resulting from the operations of the assets PSALM has yet to privatize. — ELR/VS, GMA News