EDC issues P7.5-billion notes for capital expenses

MANILA, Philippines – Energy Development Corp. (EDC), the country’s leading producer of geothermal energy, has issued P7.5 billion worth of fixed rate corporate notes to finance its capital expenses and refinance loans.

EDC said it has signed an agreement for five-year and seven-year fixed rate notes arranged by a consortium of local banks led by BDO Capital & Investment Corp., PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp.

Specifically, the notes will cover portion of the company’s refinancing and/or payment of outstanding foreign currency-denominated loans.

Proceeds from the issuance will also fund the company’s expansion projects for the remainder of the year.

According to EDC, this maiden debt issue in the domestic capital markets generated strong investor interest.

As a result, the issue was 2.5 times oversubscribed and was upsized from its original issue size of P3 billion.

“The warm response from institutional investors underscores the high credit quality of EDC and illustrates the market’s confidence in the company,” EDC chief financial officer Fenina Rodriguez said.

EDC remains the country’s leading geothermal energy firm accounting for 62 percent of total installed capacity. – Donnabelle L. Gatdula

It is now positioning itself as the premier pure renewable energy player in the Philippines with its acquisition of a 60 percent equity in the Pantabangan-Masiway hydroelectric project.

Last June 18, EDC assumed operations of the 106-megawatts Mindanao geothermal power plants further boosting its current portfolio of power generation assets.

A major component of its platform for future growth is the acquisition of the National Power Corp.-owned geothermal power plants scheduled for auction in August this year. - Donnabelle L. Gatdula