By Alena Mae S. Flores

Listed A Brown Co. Inc. has obtained a P2-billion (around P40 million) term loan from Banco de Oro Unibank Inc. to fund the investment of its affiliate in National Grid Corp. of the Philippines.

A Brown, in a disclosure to the Philippine Stock Exchange, said the loan was ?on-lent to Monte Oro Grid Resources Corp. to help MOGRC fund its 30 percent investment in NGCP,? the new operator of the country?s transmission highway.

Monte Oro Grid, together with Calaca High Power Corp., and the State Grid International Development Ltd., a subsidiary of State Grid Corp. of China, make up National Grid.

National Grid paid the 25 percent down payment of its $3.95 billion bid amounting to $987.5 million to Power Sector Assets and Liabilities Management Corp. in order to take over the operations of National Transmission Corp.

TransCo?s nationwide network consists of 20,236 circuit kilometers (combined length of transmission and sub-transmission) with a total capacity of 24,607 mega-volt amperes.

The local group of the National Grid, which holds a 60 percent stake, paid around $592.5 million while State Grid raised the remaining financing equivalent to its 40 percent stake.

National Grid will pay the remaining 75 percent using the company?s earnings over a period of 15 years.

National Grid has committed to invest P10 billion annually in the next two to three years to raise the efficiency and reliability standards of the country?s transmission highway.

Monte Oro Grid is 100 percent owned by Monte Oro Resources and Energy Inc. of which A Brown Inc. owns a 15 percent interest.

A Brown serves as the holding company of the Brown Group of Companies.