EDC mulls up to P10-billion bonds to refinance debt

MANILA, Philippines - Energy Development Corp. (EDC), the country’s largest geothermal energy producer, is planning to issue up to P10 billion worth of fixed-rate bonds to partly refinance debt.

In a disclosure to the Philippine Stock Exchange, the Lopez-controlled EDC said it filed with the Securities and Exchange Commission its registration statement covering its planned sale of P6 billion worth of bonds, with an option to increase the size to P10 billion.

EDC, a unit of the country’s largest privately held power generation firm First Gen Corp., has tapped BDO Capital & Investment Corp. as issue manager and sole bookrunner.

The issue size would be split between two tenors of 5.5 and seven years, EDC said.

Proceeds from the bond offering will be used to partially refinance and/or re-denominate EDC’s outstanding foreign currency denominated loans, and for general corporate purposes.

EDC first tapped the local debt market in June this year with the issuance of P7.5 billion worth of fixed rate bonds. The issue attracted strong investor take-up with issue oversubscribed by 2.5 times.

Geothermal energy produced by EDC accounts for 62 percent or 1,199 megawatts (MW) of total installed capacity in the Philippines.

Following the purchase of 60 percent of the Pantabangan-Masiway hydroelectric project, the Lopez-led company is planning to become a leading player in the renewable energy sector.

In June, the company took over operations of the 106-MW Mindanao power plant, a move that further boosted its power generation assets.