A SUBSIDIARY of mining firm Nickel Asia Corp. (NAC) plans to enter into a syndicated loan agreement this month amounting to P885 million to fully fund solar power projects.
NAC said in a stock exchange disclosure on Wednesday that the parties included in the planned syndicated loan are its subsidiary, Jobin-SQM, Inc. (JSI) as borrower, the Manila branch of Industrial and Commercial Bank of China and Security Bank Corp. as lenders; Security Bank Corp.–Trust and Asset Management as facility agent and collateral trustee; and SB Capital Investment Corp. as sole issue manager and lead arranger.
Meanwhile, JSI shareholders, namely: NAC, Emerging Power, Inc., and TBEA International Engineering Co. Ltd. will serve as share collateral security grantors and sponsors.
“A portion of the proceeds of the syndicated loan will refinance the existing loan of JSI from NAC which was used by JSI for its solar power plant expansion projects that commenced in 2020,” the disclosure said.
On July 6, NAC’s board of directors approved the company’s obligations in relation to the syndicated loan.
“[It approved] the pledge and delivery for the benefit of the lenders of stock certificates evidencing the shares beneficially owned by NAC in JSI to secure the obligation of JSI as borrower; and the guarantee by NAC of the Debt Service Reserve Account of JSI pursuant to the syndicated loan,” the disclosure said.
“The board of directors further authorized NAC to negotiate, agree and execute the Omnibus Loan and Security Agreement, the Share Collateral Security Agreement, the Guarantee Agreement, and any other document required in connection with the syndicated loan on behalf of NAC for the benefit of the lenders,” it added.
Sought for additional comment, NAC Vice-President for Corporate Communications Jose Bayani D. Baylon said the syndicated loan will fund the completion of a 100-megawatt (MW) solar plant project in Subic.
“It is being taken out by JSI, one of NAC’s renewable energy subsidiaries, for which the shareholdings of NAC and its co-investors in JSI will be pledged to secure the loan,” Mr. Baylon said in a mobile phone message.
According to NAC, JSI is a firm that has business interests in solar power generation and currently operates a 32-MW solar power plant in Subic Bay Freeport Zone.
“In June 2021, the Energy Regulatory Commission (ERC) granted JSI a provisional authority to operate its 30-MW solar power plant expansion, bringing the total operational capacity of its solar power plant to 62 MW,” NAC said in the disclosure.
For the first quarter, NAC posted an attributable net income of P584.1 million, a turnaround from a net loss of P89.34 million in the same period last year, due to higher ore selling prices.
On Wednesday, shares of NAC at the stock exchange dropped 0.36% or two centavos to finish at P5.48 apiece. — Revin Mikhael D. Ochave