ELECTRIC-COOPERATIVE PARTIAL
CREDIT GUARANTEE FACILITY (ECPCG)
FEATURES
| Guarantee Cover | Up to 80% of principal loan amount plus 3 months interest |
| Fees | |
| 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. |
Loan Purpose
| – 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. |
| Single Borrower Limit | 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 |
