The reduction, if not elimination, of NPC’s financial obligations primarily hinges on the success of the privatization of NPC assets, including the efficient collection of the proceeds, and PSALM’s effective implementation of its liability management program. The completion of the privatization program will also help PSALM in avoiding operational losses from expensive power plants and IPP contracts.
|LMP Transactions of PSALM
• Issuance of Japanese Yen-denominated bonds
|• NPC/PSALM’s Execution of Principal-Only Swap (POS) as approved by the Joint Boards
|• Board approved LMP-Phase I
• Issuance of first global bond amounting to USD1.0 billion
• Bond Exchange transaction (USD600 million in new money and another USD600 million in exchange), in which PSALM successfully raised USD1.2 billion
|• LMP Phase II Retail Bonds
|• PSALM, through Land Bank of the Philippines raised its PHP75 billion Short-Term Loan Line to cover its funding requirements for the year
|• Receipt of PHP35 billion through DOF’s relending program
|• NGCP’s Remittance to PSALM of PHP57 billion partial payment of the Concession Fee
|• Prepayment of Euro-denominated loans of approximately USD126.4 million
• Settlement of Japanese Yen-denominated loan for the Overseas Economic Cooperation Fund-C8 on 19 May 2015 with the principal amount of JPY5.36 billion or PHP2.0 billion
• Prepayment of various loans that generated a net present value savings of USD2.63 million
• Purchase of PSALM Global Bonds due 2016, 2019 and 2024 in the secondary market with the aggregate principal amount of USD101.260 million or PHP4.78 billion and generated a net present value savings of USD5.74 million
• PSALM prepaid the loans to NDF and ICO of the Kingdom of Spain amounting to USD39.82 million or PHP1.76 billion and PHP450.42 million, respectively.
• PSALM prepaid the ADB 1984 Philippine loan amounting to USD24.84 million
|• PSALM availed advances from the National Government in the amount of PHP10 billion with an interest rate based on the 91-day T-bill rate
|• PSALM raised its funding requirements through a credit line facility with Land Bank of the Philippines (LBP) in the amount of PHP15 billion which was disbursed in two tranches (April and May 2017)
• PSALM refinanced its shortfall by an increase of additional PHP15 billion in its standby credit line facility with LBP. The PHP30 billion Credit Line Agreement with LBP was signed on 04 July 2017. In April 2018, the 2017 short term loan of PhP15 billion was converted to a Term Loan. A drawdown of PhP8 billion was made in August 2018 and the final drawdown of PHP7 billion was made in October 2018.
• The PHP30 billion Credit Line Agreement with LBP was signed on 13 December 2018. The initial drawdown of PHP8 billion was made on 18 December 2018.
• On 16 May 2019, PSALM received the net drawn amount of USD1.1 billion, syndicated loan from LBP payable within 5 years and 1 day
• On 28 June 2019, the amount of PHP3.0 billion was drawn from the PhP30 billion loan agreement with LBP payable within 7 years or until the end of PSALM’s life in June 2026
• Final drawdown from the PHP30 billion loan agreement in the amount of PHP14.0 billion with a tenor of seven (7) years which will mature on 01 June 2026
• President Rodrigo R. Duterte signed on 28 May 2020 the Special Authority for the PHP43.0 billion domestic loan with the Development Bank of the Philippines.
• The loan agreement between PSALM and DBP was signed on 14 May 2020 and the guarantee letter was issued by DBP on the same day.
• The initial drawdown of PHP5.0 billion was made on 14 August 2020.
• The 2nd drawdown of PHP10.0 billion was made on 03 November 2020
• PSALM refinanced its 2021 shortfall through a loan syndication with LBP, DBP and UCPB with the agreement finalized and signed on 29 April 2021.
• The initial drawdown of PhP21.0 billion from the facility was made on 10 May 2021. Additional drawdown was also made on 14 June 2021 amounting to PhP12.0 billion. Hence, as of 30 June 2021, the total drawdowns is PhP33.0 billion.