CREDIT GUARANTEE FACILITY (ECPCG)
|Guarantee Cover||Up to 80% of principal loan amount plus 3 months interest|
|Guarantee Fee||Minimum of 0.25% p.a. on guaranteed amount (to be determined)|
subject for evaluation on the risks associated with the credit
|Processing Fee||Processing/front-end fee of 1.50% plus applicable taxes based|
on guaranteed principal amount to be paid by the Borrower to PHILGUARANTEE
Minimum Eligibility Criteria
|Eligible Borrower/s||a. Electric Cooperatives|
– Duly registered with the NEA or CDA
– Classified as Green or Yellow by NEA
– Has NEA clearance/approval to obtain financing
– Has a projected debt service coverage based on forecasted cash flow of at least 1.0x
b. Non-ECs – Private firms with viable “Investment Management Contracts) (IMCs) with ECs (should meet the following prescribed IMC provisions)
– Under the IMC scheme, the investors will assume full management and profit and loss responsibility for EC operations, accountable to the EC Board, over the long-term contract term experience to be 10-15 years).
– The IMC investor will be responsible for mobilizing financing for capital investment from its own equity, from debt with the IMC investor as borrower, and from internally generated EC revenues.
– The IMC would, by design, provide incentives for efficiency through performance-based remuneration, enhance the accountability of service providers and mobilize private finance.
| – Power distribution upgrades of ECs which shall result in direct measurable energy (kWh) savings|
– Improving power supply system safety, reliability, efficiency and power service quality for existing customers
– Rehabilitation and capacity upgrades of the existing supply system (including purchase of second-hand sub-transmission facility)
– Providing the necessary hardware, software, motor vehicles, tools and equipment to improve employee productivity, safety and efficiency of customer service provision
Guarantee Terms and Conditions
|Guarantee Term||Term of the guarantee will coincide with that of the debt which is currently estimated at 3-7 years with provision for grace period. Maximum guarantee term shall be nine (9) years.|
Has a projected debt service coverage based on forecasted cash flow of at least 1.0x.
|The guarantee liability per borrower shall not exceed P300 million or 25% of the aggregate maximum allowable guarantee portfolio, whichever is lower.|
|Collateral/Security||Project cash flows and/or assignment of the Reinvestment Allowance Fund or RAF (represents 5% of the borrower’s monthly gross revenues, to be placed in escrow account) without prejudice to the submission of additional real estate properties and/or acceptable chattels and other collateral to include:|
– Assignment of receivables with recourse
– Assignment of power purchase agreement
– Collateral sharing with NEA in case of NEA-PHILGUARANTEE co-financing