MABUHAY VINYL Corp. (MVC) has entered into a loan agreement worth P160 million with Philippine Resins Industries, Inc. (PRII) in effort by both companies to improve the utilization of their resources.
In a disclosure to the stock exchange on Wednesday, MVC said the loan is payable not later than 163 days counted from drawdown and can be extended upon agreement from both companies.
Under the agreement, MVC is the lender while PRII is the borrower. Both companies are subsidiaries of Tosoh Corp., a Japanese company with business interests in several markets like chemical, petrochemical, bioscience and consumer electronics, among others.
MVC said the initial interest rate for the loan agreement is the PHP Bloomberg Valuation Reference rate on Nov. 22.
“The interest rate will then be repriced every thirty days thereafter, plus 0.50% per year. The loan earns interest starting the drawdown date until the loan is fully paid,” it said in a statement.
MVC and PRII entered a previous loan agreement worth P240 million, bringing the total principal amount of both agreements to P400 million.
Based on its website, MVC is the sole chlor-alkali producer in the Philippines. It produces caustic soda and hydrochloric acid.
Meanwhile, PRII said in its website that it manufactures polyvinyl chloride (PVC) and has a PVC resin manufacturing facility in Mariveles, Bataan.
Shares of MVC climbed 0.21% or one centavo to close at P4.70 per piece on Wednesday. — Revin Mikhael D. Ochave
