SteelAsia Manufacturing Corporation (SteelAsia), the largest and most modern reinforcing steel bar producer in the country, announced the successful fundraising of a PhP 4.4 billion, syndicated term loan facility of its wholly-owned subsidiary - Del PilarSteel Inc (DPSI).
PNB Capital and Investment Corporation (PNB Capital) acted as the sole Issue Manager and Joint Lead Arranger. For the facility with China Banking Corporation (Chinabank) also as a Joint Lead Arranger. The lending banks include Philippine National Bank, China Banking Corporation, Philippine Veterans Bank, Robinson Bank Corporation, United Coconut Planters Bank, Bank of Makati, and China Bank Savings.
Proceeds of the facility shall be used to support DPSI’s rebar rolling in Plaridel, Bulacan with an annual capacity of 1.2 million tons per year. “This is a happy day for Philippine manufacturing. With the confident support of our most respected banks, SteelAsia Manufacturing Corporation will now push through with the Plaridel Rolling Mill Project,” were the first words of SteelAsia’s President and Chairman of the Board, Mr. Benjamin O. Yao during the signing ceremony held at the Makati Shangri-La Hotel last October 2, 2015. He also thanked the financing consortium that contributed to this success, “We appreciate the confidence shown by the banks represented here today for making this project possible. That confidence in the excellence and integrity with which SteelAsia is managed brings us pride. It also brings us more determination to work harder for our nation’s progress.” President & Chief Executive Officer of PNB Capital and Investment Corporation, Mr. Gerry B. Valenciano, congratulated SteelAsia Manufacturing Corporation and the syndicate of lending banks for being part of this maiden peso syndicated offering, “SteelAsia has just made another milestone in the Philippine steel Industry as they tapped the services of PNB Capital and Investment Corporation and China Banking in the largest peso-denominated syndicated term loan facility to date of a steel mill in the Philippines.
The project is expected to produce and subsequently supply rebar in 2017, in time to address the country’s planned and ongoing road infrastructure and power development, the housing backlog and the high growth of the Business Process Outsourcing (BPO) and tourism industries. With the opening of this new rolling mill plant, it would further support the efforts of SteelAsia Manufacturing Corporation in correcting the geographical supply-demand incongruence of the Philippines by locating their new rebar rolling mill throughout the archipelago and close to the regional centers of development. “As we disperse our plants nationwide – from Cebu to Davao to Cagayan De Oro and subsequently to Plaridel and to a site in Southern Luzon – the derivative economic activates will be felt more widely. The Plaridel rolling mill is projected to contribute significantly to employment creation within the region. It has been noted that every job in the steel industry creates seven more jobs in various support industries. For instance, apart from delivering steel – the trucks needed to move its raw materials and finished products tom and from the rolling mill also backloads agricultural products from farm to market. This is in itself a contribution to improving our country’s logistic system, “Mr. Yao added.
Once operational, the rolling mill is expected to be a showcase of steel manufacturing technologies, being one of the largest and most modern rebar rolling mill in the world. Its Italian-engineered technologies are expected to be energy efficient and environmentally friendly. The mill is also designed for the highest level of productivity, precision and operational safety.
SteelAsia Manufacturing Corporation currently operates 2.1 million tons of annual rebar capacity. Its existing facilities are located throughout the Philippine archipelago; two in Bulacan, and one each in Batangas, Cebu, Misamis Oriental and Davao City. The new rolling mill is expected to increase the company’s annual capacity to 3.3 million tons.