THE Philippine Ports Authority (PPA) recently signed the P2-billion bond flotation agreement with its joint issue manager and lead joint lead underwriter, the Development Bank of the Philippines (DBP) and First Metro Investment Corp.(FMIC).
The bond, which carries a 7% interest rate, with a maturity of seven years, was the first capital transaction of PPA for the year.
Present during the signing ceremony were Finance secretary Margarito Teves, Treasurer Roberto Tan, PPA general manager Oscar Sevilla, DBP president and CEO Rey David and Roberto Juanchito Dispo, executive vice president of FMIC.
The Department of Finance extended the guarantee for the first time for the seven year fixed rate corporate note, which was signed by Sec. Teves.
Dispo claimed the guarantee was not absolute and that it would be for “certain events that would come up”.
“This corporate note will be used for the development, modernization and expansion of ports all over the country and in line with the mid-term plans of the President. We will fast track the port projects to stimulate the economy,” Sevilla said.
The proceeds of the P2-billion bonds will be used for the modernization of the six priority ports namely the newly-constructed wharf at Cagayan de Oro, Sasa Wharf port expansion, Iloilo Container Port Complex, wharf in Ozamiz Oriental and phase II of the wharf expansion at the Zamboanga and the General Santos City port expansion.
