The Lopez-controlled Energy Development Corp. (formerly PNOC-EDC) has signed a P4.1-billion loan with International Finance Corp. (IFC), the private sector arm of the World Bank group.
During a signing ceremony yesterday, EDC president and chief executive officer Paul Aquino said the loan is an indication of continued confidence on EDC amid the current challenging financial environment. The loan was signed by Aquino and IFC country head Jesse Ang.
Aquino said EDC will use the loan to finance medium term capital expenditures.
According to Aquino, the loan agreement also further strengthens a partnership that began in the 1980s when EDC was just starting to develop its geothermal projects.
In 2006, IFC became a core institutional investor of EDC when the geothermal firm listed its shares at the Philippine Stock Exchange.
“This loan is a testament to IFC’s support for EDC’s long-term vision of becoming a global leader in the renewable energy industry, particularly in geothermal energy,” Aquino said, adding that EDC is determined and committed to share its cutting-edge geothermal technology in the region and in the world.
For her part, EDC chief financial officer Fenina Rodriguez said the company was able to get good terms for the multi-billion peso financing from IFC.
“We are pleased with the terms of the loan from IFC. We were able to negotiate a 15-year tenor with three years’ grace period for the loan. We believe these terms reflect IFC’s confidence on EDC’s consistent financial performance,” Rodriguez said.
In an earlier statement, IFC said that it would “continue to help EDC in its transition to being a leading global large-scale clean renewable energy producer.”
EDC is the country’s largest producer of geothermal energy accounting for more than 60 percent of the country’s installed geothermal capacity.
The company recently marked its entry into hydropower, acquiring 60 percent of First Gen Hydro Power Corp. (FGHPC), operator of the Pantabangan-Masiway hydroelectric power complex.
When First Gen acquired the then government-owned PNOC-EDC, it was solely focused on geothermal assets.
EDC believes that aside from its dominance in developing geothermal power projects, it aims to strengthen and solidify its foothold in the renewable energy business.