EDC borrows P5 B from Security Bank

MANILA, Philippines - Lopez-led Energy Development Corp. has closed a P5-billion loan with Security Bank Corp. as part of its refinancing program for its existing debts.

In a disclosure to the Philippine Stock Exchange yesterday, EDC said it executed a 15-year and 10-year fixed rate amortizing loan with Security Bank Corp. for a total amount of up to P5 billion.

“The facility will be used to refinance existing and maturing loans of the company and for general corporate purposes,” it said.

Previously, EDC has also signed a 15-year, P3.5-billion loan deal with Union Bank of the Philippines for the same purpose.

This follows the tender offer for $100 million of $300 million 6.5-percent notes due 2022, which are listed on the Singapore Exchange Securities Trading Limited (SGX-ST).

EDC said the offer will better manage currency risk and better optimize EDC’s debt maturity profile. It will also give noteholders the opportunity to gain liquidity, the company added.

Once acquired, EDC said notes will be cancelled and will not be re-issued or re-sold.

The company has appointed Hongkong and Shanghai Banking Corp. Ltd. as dealer manager for the offer.

Last year, its consolidated net income rose 24 percent from P7.86 billion in 2015 to P9.72 billion in the previous year.

Meanwhile, core net income increased four percent from P8.8 billion to P9.2 billion due to improved performance and lower operating expenses of the Negros Island and First Gen Hydro business units.

Revenues for the period amounted to P34.2 billion, a slight decrease of P0.1 billion from the previous year, as depressed spot market prices for the Bacman and Nasulo geothermal plants’ uncontracted capacity offset gains in overall sales volume.