The Power Sector Assets and Liabilities Management (PSALM) Corporation targets new cash offering and a bond exchange offer as part of its efforts to efficiently manage the liabilities of the National Power Corporation (“NPC”).
The bond exchange offer will help extend the maturity of the existing loans incurred by NPC and which were transferred to PSALM as mandated by Republic Act No. 9136, the Electric Power Industry Reform Act.
Eligible for the bond exchange offer are NPC loans that will mature in 2010 and 2011.
PSALM’s new cash offering, on the other hand, consists of an offering of 2024 Bonds for cash in a maximum aggregate principal amount not to exceed USD600 million. The proceeds will be used for general corporate funding requirements, including servicing payments arising from debt and independent power producer contracts.
The Global Bond Offering commenced on 16 November 2009 and will expire on 24 November 2009. (PIA)