Land Bank of the Philippines (LandBank) will provide P60 billion out of the total P110-billion syndicated loan to state-owned Power Sector Assets and Liabilities Management Corp. (PSALM) to finance the provision of power to rural communities.

LandBank on Thursday said it signed the syndicated loan agreement with PSALM last 30 July, committing to augment the latter’s working capital for refinancing liabilities and settling contractual obligations.

This syndicated loan provides additional financial support to PSALM, ensuring our continued progress and to assist our asset management and privatization strategies.

PSALM president and chief executive officer Dennis Edward dela Serna said the loan will help reduce the corporation’s financial obligations by P12.9 billion.

“This syndicated loan provides additional financial support to PSALM, ensuring our continued progress and to assist our asset management and privatization strategies,” he said.

Assets management firm

PSALM is responsible for privatizing and monetizing assets of the National Power Corp. (NPC), which include independent power producer contracts, real estate, and all other disposable assets such as the transmission business of the National Transmission Corp.

The NPC provides electricity to remote areas or islands in the country through over 200 small power plants. It also manages the MV Agus and Pulangi Hydroelectric Power Plants in Mindanao.

LandBank and the Development Bank of the Philippines served as the joint lead arrangers for the syndicated loan.