IFC Hydropower Project Wins Four Industry Awards

Magat Hydro, an IFC infrastructure project in the Philippines, recently received four industry awards for 2007.

The project was selected amid a tight field of contestants for the following awards:

• Project Finance International's Asia Pacific Power Deal of the Year
• Asset Triple A House and Deal's Best Project Finance and Best Privatization Awards for 2007
• Alpha Southeast Asia Magazine's Best Vanilla Deal in Southeast Asia
  

The project is the country's first power sector privatization in a decade to be concluded with significant foreign participation. SN Abotiz Power, the project's sponsor, made a $530 million bid on the 360-megawatt plant, and IFC supported the transaction with a $105 million loan. Magat's financing restored investor confidence in the Philippines' power sector, representing a major milestone for power project financing.

Magat Hydro has distinguished itself in many ways, all of which led to its recognition by the industry. These include:

• Significant use of long-tenor local currency financing, which helps mitigate foreign exchange risk
• Pioneering a financing model that enabled lenders to analyze and accept electricity market risk
• Record speed for a structurally innovative transaction with multiple lenders—four months from mandate to financial closing

For more information contact:

Zibu Sibanda
IFC Communications Officer
Phone: + 1 202-473-0605
E-mail: zsibanda@ifc.org