Dominant power distributor Manila Electric Co. (Meralco) announced plans to draw from a P75-billion credit facility within the week to bolster growth and operational resilience amid rising demand.
In a stock exchange report on Tuesday, Meralco said the facility was secured from top financial institutions BDO Unibank Inc., Bank of the Philippine Islands (BPI) and Metropolitan Bank and Trust Company (Metrobank).
The loan, structured with a 12-year repayment term, will primarily support ongoing and planned investments and other general corporate needs.
Meralco, riding on the sustained growth of the economy, has forecast a record-breaking 2024 with profits expected to surpass P43 billion.
The company also projected a 6.3 percent growth in consolidated sales volume for the year, reaching 54,259 gigawatt-hours (GWh), up from 51,044 GWh in 2023.
This exceeds its initial target of 53,473 GWh, driven largely by strong performance in the residential and commercial sectors.
A key driver of this growth is the expansion of Meralco’s customer base, which is expected to exceed 8 million by the fourth quarter of 2024, alongside higher per capita electricity consumption fueled by the ongoing El Niño phenomenon.
Official 2024 sales figures are set to be released in January 2025.
Beyond its core power distribution business, Meralco is exploring nuclear energy development as part of its diversification strategy.
The company recently completed a pre-feasibility study identifying five potential sites for a nuclear power plant and has commenced a more comprehensive analysis.