Press Releases / News Updates
Roxas Holdings Gets Another P2 Billion-Loan for Future Expansion, Ethanol Business
Listed sugar conglomerate Roxas Holdings, Inc. (RHI) recently obtained another P2 billion-loan facility from Bank of the Philippine Islands (BPI) and Rizal Commercial Banking Corporation (RCBC) to complete the P5.8-billion capital it needs to bankroll its capacity expansion and entry into the ethanol sector.
RHI Senior Vice President for Finance and Treasurer Asuncion Aguilar said the Group was given a loan facility of P1 billion by BPI, P500 million by RCBC and another P500 million by BPI Asset Management and Trust Group.
RHI secured the loan facilities together with its sugar units Central Azucarera Don Pedro, Inc. (CADPI) in Batangas and Central Azucarera dela Carlota, Inc. (CACI) in Negros Occidental.
Last week, RHI and its sugar units secured a P4.7 billion-loan facility from Banco De Oro-EPCI Bank, Inc. to bankroll the company’s expansion of its sugar milling and refining subsidiaries to increase its revenue-generating capability and enhance its cost-competitiveness.
The total loan facilities from BDO, BPI and RCBC amount to P6.7 billion.
“The funds we need would only amount to about P5.1 billion. We are grateful for the respective contingencies granted by the three institutions. This is clearly a testimony to their confidence in our company,” Ms. Aguilar said.
This is in preparation for the entry of low-priced imported sugar that will enter the country in 2010 under the ASEAN (Association of Southeast Nations) Free Trade Agreement.
“P4.7 billion of the capital will be allocated for the purchase of factory equipment from two sugar mills abroad – one in the United States and one in Australia - while P1.2 billion will be used to set up the ethanol plant and the rest, to refinance existing debts,” Ms. Aguilar explained.
The company is diversifying its business activities by entering into the energy sector through manufacturing fuel ethanol to take advantage of the definite market brought about by the enactment of the Biofuels Act of 2006. The law mandates the use of locally sourced biofuels.
“There is no stopping us from rolling out our strategic initiatives now that we have obtained the necessary funds,” RHI Chairman and Chief Executive Officer Pedro Roxas said.
“We envision this expansion program to place us in a competitive advantage and in the process, maximize value for our shareholders,” he added.
Refer to: Celest Jovenir Investor Relations and Corporate Communications Tel: (632) 810-8901 to 06 ext. 1811 Email: firstname.lastname@example.org