LANDBANK launches loan program for power distributors
LAND BANK of the Philippines (LANDBANK) launched a short-term loan facility for electricity distribution companies designed to mitigate price increases with consumption expected to rise due to high temperatures.
The bank said in a statement on Wednesday that it allocated an initial P1.5 billion for the lending program, which was launched on April 14.
Under the program, power distributors may borrow up to 80% of the incremental increase in the working capital requirement during the dry months, the bank said.
However, the amount may not exceed three times the average billings of the power distributors’ suppliers.
“LANDBANK aims to provide consumers more breathing room to pay their energy bills by helping prevent a price surge on their monthly expenditures. We are also committed to boosting the capacity of energy players to provide sufficient, accessible and reasonably-priced supply of electricity nationwide,” LANDBANK President and Chief Executive Officer Cecillia C. Borromeo said.
The lending program is known as Assistance to Narrow and Trim down the Incremental power cost increase via Bridge financing Initiative of LANDBANK to Lower and Spread out Hot summer-triggered monthly Consumption on Konsumers’ Electricity (ANTI BILL SHOCK).
“The launch of your ANTI BILL SHOCK Lending Program is, indeed, a demonstration of your organization’s dynamic initiative to explore all possible opportunities to aid the energy sector, where the electric cooperatives belong,” National Electrification Administration Deputy Administrator Leila B. Bonifacio said at the launch. — Aaron Michael C. Sy