Sugar conglomerate Roxas Holdings Inc., which owns Central Azucarera de La Carlota Inc., said it has obtained an additional P2 billion-loan facility from two banks to fund its capacity expansion and the ethanol production venture.

The new loan from Bank of the Philippine Islands and Rizal Commercial Banking Corp. will complete the P5.8-billion capital it requires to pursue the two projects, the company said in its latest disclosure to the Philippine Stock Exchange.

The company acquired P1 billion from BPI, P500 million by RCBC, and another P500 million by BPI Asset Management and Trust Group.

RHI said it secured the loan facilities together with its sugar units Central Azucarera Don Pedro Inc. in Batangas and Central Azucarera de La Carlota Inc. in Negros Occidental.

Previously, RHI, with CADPI and CACI also obtained a P4.7 billion-loan facility from Banco De Oro-EPCI Bank Inc. to fund the expansion of its sugar milling and refining subsidiaries to boost its revenue-generating capability and enhance its cost-competitiveness.

The company's total loan facilities from BDO, BPI and RCBC total P6.7 billion.

We would need only about P5.1 billion and we are grateful for the respective contingencies granted by the three institutions which is a clearly testimony to their confidence in our company, said Asuncion Aguilar, RHI senior vice president for finance and treasurer.

Aguilar said they are preparing for the entry of low-priced imported sugar that will enter the country in 2010 under the Association of Southeast Nations Free Trade Agreement.

She said the P4.7 billion will be allocated for the purchase of factory equipment from two sugar mills in the United States and in Australia . The P1.2 billion will be used to set up an ethanol plant while the rest to refinance existing debts.*NLG

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