Posted on 09:03 PM, December 20, 2009 [ BusinessWorld Online ]
ILOILO CITY -- The Aklan provincial government plans to sell P260 million worth of bonds next month to finance a reclamation project in Caticlan, Malay, Aklan, an official statement late last week read.
The provincial government signed last Wednesday a memorandum of agreement with the Local Government Unit Guarantee Corp. (LGUGC) and the Philippine National Bank (PNB) Trust Banking Corp. on the bond issue.
Funds to be raised will finance the reclamation of 1.4 hectares of foreshore area in Brgy. Caticlan, Malay, which is envisioned to host a health and wellness resort, as well as hotel and adventure tourism facilities that will complement the resort island of Boracay.
Lydia N. Orial, president and chief executive officer of LGUGC, said in the statement that the project will be completed in 10 years. LGUGC serves as the guarantor of the project, while AYC Resource Management is the financial advisor.
The same statement quoted Rafael G. Ayuste, Jr., head of PNB Trust Banking Corp., as saying: "We find the project feasible and there is only minimal risk in terms of credit. Because of the minimal risk, we also have to offer minimal interest rate for the project." -- FALA
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