BDO Unibank Inc. (BDO), the country’s leading universal bank, announced that it has provided loan to KEPCO SPC Power Corporation (KSPC), a subsidiary of South Korea’s largest electric utility Korea Electric Power Corporation (KEPCO), for its power project in Cebu that will supply the growing electricity demand across the Visayas region.
This partnership enabled KSPC to secure power sales contracts and procure essential resources, ensuring smooth plant operations. There was no mention as to the amount of loan extended by the Sy Group’s financial arm to KSPC.
In addition, KSPC has optimized cash asset management to enhance profitability, an essential aspect that benefits from strategic bank collaboration. The company views its banking relationships as vital, long-term partnerships that must be nurtured and continuously strengthened to ensure smooth business operations.
“When KSPC was securing multiple power sales contracts last year, BDO demonstrated a proactive and client-oriented approach by facilitating the issuance of our credit line and SBLCs (Standby Letter of Credit). Their responsiveness and commitment to our financial needs helped us solve our issues,” said Mr. Jeon, Yong Su, president of KSPC.
Since 2017, KSPC has built a strong and enduring relationship with BDO. The bank has assisted KSPC in liquidity management and offered tailored financial instruments to support its project needs.
KSPC has contributed 17 percent of Cebu Island’s total installed capacity and 20 percent of its power generation. Its reach extends to neighboring islands such as Bohol, Panay, Negros and Leyte helping local communities and businesses expand their activities and grow their operations without disruption of power shortages or outages.
“Energy security is a cornerstone of progress. At BDO, we are committed to financing significant projects that power industries, uplift communities and boost economic progress,” shared Charles M. Rodriguez, BDO’s Executive Vice President and Head of Institutional Banking Group.
Established as a joint venture in 2005, KSPC entered the Philippine power market to address the growing energy needs of the country. Construction of its power plant began in 2007, and upon completion in 2011, the company has achieved a cumulative net income of PHP26 billion over 14 years, maintaining a net profit margin of 24.96%.
BDO has been instrumental in KSPC’s journey, ensuring the seamless execution of its financial operations while managing its power plant efficiently for uninterrupted electricity. KSPC is actively exploring opportunities to participate in carbon credit market and adopting new technologies in the power sector to support the country’s transition to a low-carbon economy.
