MAHARLIKA Investment Corp. (MIC) said it has assigned its $10-million bridge loan to Makilala Mining Co., Inc. (MMCI) to a unit of India’s Kiri Industries Ltd., transferring its rights as lender.
In a statement sent over the weekend, MIC said it executed an assignment agreement covering its loan position under the omnibus loan and security agreement (OLSA) with MMCI in favor of Equinaire Holdings Ltd.
Equinaire is a wholly owned subsidiary of Kiri Industries, an India-listed manufacturer of dyes, intermediates and basic chemicals.
“The transaction involves the transfer by MIC of its rights, title and interests as lender under the OLSA,” MIC said.
MIC had extended the $10-million bridge loan facility to support MMCI’s front-end engineering design (FEED) and feasibility study for the Maalinao-Caigutan-Biyog (MCB) copper-gold project.
MMCI retains its contractual right to prepay the outstanding loan in full within 15 business days from receipt of notice.
“In the absence of full repayment within this period and the satisfaction of customary closing conditions, the assignment will take effect in favor of Equinaire,” it said.
MIC said the transaction is expected to deliver gross annualized returns exceeding the loan’s stated interest rate of 12.5% per annum.
“This transaction underscores MIC’s role as a catalytic investor, deploying capital to unlock value in strategic sectors and creating pathways for long-term private investment,” said MIC President and Chief Executive Officer Rafael D. Consing, Jr.
“The bridge financing enabled critical early-stage work for the MCB Project, and this assignment allows MIC to realize its returns while bringing in a capable international partner to support the project’s next phase of development,” he added.
MIC said the deal forms part of its strategy to actively manage its portfolio, recycle capital and support the mobilization of foreign investment into priority sectors of the Philippine economy.
It added that the completion of the engineering and feasibility work has helped reduce project risks and facilitate the entry of a new strategic investor.
“Kiri Industries has commenced construction of a greenfield copper smelting plant in India. Its participation reflects increasing international investor confidence in the Philippines’ mineral development sector,” MIC said. — Justine Irish D. Tabile
