financing be provided by US banks.
Nations Bank also underwrote 25
per cent of the US Eximbank-guar-
anteed construction loan. Other lead
managers were ABN AMRO,
which absorbed US$35.3 million;
and Banque Paribas (now BNP
Paribas), ING Bank and Fuji Bank,
each of which underwrote US$28.3
million. In all, 36 banks participated
in the financing.
In August 1997, six months after
the initial financial closing, InterGen
and Ogden Energy Group, Inc.,
arranged an offering for US$203 mil-
lion in senior secured bonds to take
out the US$100 million trustee loan
insured by OPIC. Because of strong
investor demand, the offering was
increased to US$215 million.
Salomon Brothers arranged the deal.
The estimated sources and uses
of funds for the Quezon Power pro-
ject are shown in Exhibit 11.4.
When construction was com-
pleted and the plant began to oper-
ate, PEFCO took out the
construction loan by extending a
US$424.6 million, 12-year loan at a
fixed rate of 6.013 per cent. The
loan was covered by a comprehen-
sive US Eximbank guarantee.
PEFCO was created in 1970 to
assist in the financing of US
exports through the mobilisation of
private capital as a supplement to
the financing available from com-
mercial banks and other lenders. It
acts as a direct lender and as a sec-
ondary market buyer of export
loans originated by lenders.
PEFCO’s programmes cover the
range of the export finance contin-
uum: short-term, medium-term and
long-term. Headquartered in New
York City, PEFCO is a private-sec-
QUEZON POWER, THE PHILIPPINESExhibit 11.4
Estimated sources and uses of fundsSources of funds Construction Operations
period (US$) period(US$)
Eximbank-supported construction
credit facility 375,202,000 0
Eximbank term loan 0 409,533,000
Total bank loan commitments 375,202,000 409,533,000
Senior secured bonds due 2017 203,000,000 203,000,000
Total credit facilities 578,202,000 612,533,000
Base equity contributions 204,178,000 204,178,000
Total equity contributions 204,178,000 204,178,000
Total sources 782,380,000 816,711,000
Uses of funds Construction Operations
period (US$) period(US$)
Generation facility 419,560,000 419,560,000
Transmission line 23,306,000 23,306,000
VAT, insurance 21,878,000 21,878,000
Total EPCM costs 464,744,000 464,744,000
Start-up and other owner costs 50,487,000 50,487,000
Development costs 37,951,000 37,951,000
Development fee 8,000,000 8,000,000
Eximbank term exposure fee 8,000,000 34,331,000
Interest during construction 87,425,000 87,425,000
Other financing fees 62,719,000 62,719,000
Contingency 35,000,000 35,000,000
Other 36,054,000 36,054,000
Total uses 782,380,000 816,711,000
Funding commitments Construction Operations
period (US$) period (US$)
Eximbank-supported construction
credit facility 405,000,000 0
Eximbank term loan 0 442,057,500
Uninsured alternative credit facility
(except cost overrun) 50,000,000 50,000,000
Cost overrun loan commitment 30,000,000 30,000,000
Total bank and Eximbank
loan commitments 485,000,000 522,057,500
PPA letter of credit facility 6,505,500 6,505,500
Coal supply letter of credit facility 6,000,000 6,000,000
Total bank facility commitments 497,505,500 534,563,000
Senior secured bonds due 2017 203,000,000 203,000,000
Total credit facility commitments 700,505,500 737,563,000
Base equity commitments 207,709,000 207,709,000
Contingent equity commitments 20,000,000 20,000,000
Total equity commitments 227,709,000 227,709,000
Total commitments 928,214,500 965,272,000