P260-million floated bonds offered to investors
BY BOY RYAN B. ZABAL

MALAY, Aklan - To finance the multi-million reclamation project in Barangay Caticlan, the provincial government offers to sell the P260-million worth of bonds to the public next month.
Aklan Governor Carlito Marquez recently signed a Memorandum of Agreement with the Philippine National Bank (PNB) Trust Banking Corporation and the Local Government Unit Guarantee Corporation (LGUGC), the guarantor of the project.
LGUGC president and chief operations officer Lydia Orial and PNB Trust Banking Corporation head Rafael Ayuste, Jr. cited the feasibility and the bullishness of financing local infrastructure projects for the Aklanons.

The P260-million bond flotation is the second bond facility offered by the provincial government to the general public after its successful P40-million Aklan-Boracay provincial bonds underwritten by Land Bank of the Philippines for the construction of Caticlan jetty and terminal during the term of then Governor Florencio Miraflores in early 1990s.

With the money from bonds next year for the reclamation of 1.4 hectares foreshore area in Caticlan, the provincial government is eyeing to construct a resort and spa, an ocean adventure park and cable car transport system facilities and the building of a 100-room hotel health and wellness center in the next five years.

Marquez said these developments in Barangay Caticlan and Cagban augurs well for the efforts of the provincial government to enhance the growing tourism industry of the island of Boracay.

The latest issuance of bonds designated Philippine National Bank as trustee for the bond facility payable in 10 years and AYN Resource Management Group as financial advisor tasked to undertake the comprehensive feasibility study, financial packaging assistance and consultancy services in raising the entire P500-million bond flotation fund.

PNB Trust Banking Corporation is designated as the licensed underwriter where it buys the bonds from the LGUs then sells them to institutional investors and individuals while Local Government Unit Guarantee Corp (LGUGC) guarantees the P260-million floated bonds in case the LGUs fail to honor their obligation.

Caticlan jetty port and terminal is one of the major revenue generating assets under the Economic Enterprise Development Department (EEDD) of the provincial government.