Local life insurer Insular Life extended a total of P1.25 billion in loans to the biggest corporations in the first half.
The loans were given to four industry giants Ayala Land (P300 million) in February; PLDT (P500 million) in March; and Globe Telecom (P250 million), and Cebu Energy Development Corp. (P200 million) in June.
The loans were part of various capital raising initiatives by these companies to fund expansion activities.
The most recent, issued to Cebu Energy (CEDC) is part of a P16 billion full-peso offer which is said to be the largest to date.
Eleven banks and insurance companies participated in the offer. The amount generated will be used to finance the completion of CEDC’s 246-megawatt coal-fired power plant in Toledo, Cebu.
The plant will have three 82-megawatt (MW) generators, with the first ready for testing on January 2010. The new power plant will significantly improve the power supply in Cebu.
Insular Life’s participation in these capital-raising activities is part of its continuing strategy to prudently maximize investment opportunities.
In 2008, the company reported P4.2 billion in investment income, and a consolidated net income of P2.1 billion, notable accomplishments given the challenging global financial environment.