BDO helps strengthen energy security in Visayas
Metro Manila, Philippines - The Visayas has seen a flourishing economy and rapid business growth that requires higher power consumption that demands a stable and sustainable energy supply.
Recognizing the vital role of reliable energy infrastructure to foster economic progress, BDO Unibank Inc. (BDO) provides financial support to Cebu-based KEPCO SPC Power Corporation (KSPC), benefiting companies, households, and communities.
KSPC, a subsidiary of Korea Electric Power Corporation (KEPCO) and the largest electric utility in South Korea, has been instrumental in the stable power supply across the Visayas, actively supporting its social and economic development. The company has contributed 17% of Cebu Island’s total installed capacity and 20% 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.
Since 2017, KSPC has built a strong and enduring relationship with BDO. The bank assisted KSPC in liquidity management and offered tailored financial instruments to support its project needs. This partnership enabled KSPC to secure power sales contracts and procure essential resources, ensuring smooth plant operations.
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 Jeon Yong-su, president of KSPC.
“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 executive vice president and head of Institutional Banking Group.
Established as a joint venture in 2005, KSPC entered the power market to address the growing energy needs. Construction of its power plant began in 2007, and upon completion in 2011, the company has achieved a cumulative net income of P26 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 the carbon credit market and adopting new technologies in the power sector to support the country’s transition to a low-carbon economy.
A resilient power sector is essential to sustaining business growth and industrial development.
BDO continues to drive sustainable progress by empowering businesses and creating new avenues for investment.
