Client News
PNB committed to support Global Steel
Nov 23, 2005
(Manila, Philippines) — In a November 16 letter, a senior executive of Philippine National Bank (PNB) reiterated the bank’s commitment to support Global Steel Philippines, Inc. (GSPI) and fulfill its commitments to the steel manufacturer.
“We remain committed to support GSPI and comply with our commitments,” wrote first senior vice president and chief credit officer Renato A. Castillo.
Since acquiring the former National Steel Corporation (NSC), GSPI has invested approximately $56 million in acquisition-related and development costs, of which US$35 million went to rehabilitation of the company’s Iligan plant. The company will pay a total of P12 billion to secured creditors over an agreed period in compliance with the asset purchase agreement governing the sale. The first such payout due in October 2006 was paid this month. PNB is one of GSPI’s major creditors.
The company exports steel products produced in its Iligan plant throughout Asia, including to China, Vietnam, Indonesia, Malaysia, and Pakistan. It supplies most major steel suppliers in the domestic Philippine market.
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About Global Steel Philippines (SPV-AMC) Inc.
Global Steel Philippines, Inc. (GSPI) is the Philippines’ largest steel manufacturer. It exports 70 percent of its production primarily to other Asian nations. Over 1,200 skilled committed Filipino workers are employed by the company in Iligan City where its manufacturing plant is located. They are proud to play an important role in the development of the Philippine economy. GSPI is a subsidiary of Global Steel Holdings Limited (GSHL), which has operations in Bosnia, Bulgaria, Libya, Nigeria, India, and the Philippines. Worldwide, GSHL operates and manages 14 million tons per annum of steel production capacity.