Energy Development Corp. to buy back $211-million notes

MANILA, Philippines — Lopez-led Energy Development Corp. is looking to buy back part of the $211-million notes listed on the Singapore Exchange Securities Trading Ltd.

EDC  made a tender offer of up to $50 million to the holders of $210.99 million bonds due 2021.

“The purpose of the offer is to better manage currency risk and better optimize the issuer’s debt maturity and repayment schedule,” EDC said.

The offer will also give noteholders the opportunity to gain liquidity, the company said.

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

EDC was delisted on the Philippine Stock Exchange on Nov. 29, 2018 as part of its corporate strategy to gain greater flexibility.

This was after it successfully concluded its voluntary delisting tender offer, where it accepted and purchased a total of two billion common shares at P7.25 each.

Almost 98.5 percent of the company’s public shareholders participated in the tender offer.

In August 2017, First Gen Corp. entered into an agreement with Philippines Renewable Energy Holdings Corp. (PREHC) to sell up to 31.7 percent of its stake in EDC.

The new partner will bring in an experienced and credible partner to grow First Gen’s renewable energy platform.

First Gen and PREHC announced their intention to delist EDC,  pursue a corporate strategy that will require greater flexibility over factors like its dividend policy and leverage, and support long-term growth.

Stock brokerage firm F. Yap Securities Inc. said EDC’s voluntary delisting is seen as a favorable development for First Gen since the market’s attention is geared on the parent company.

First Gen is part of the Lopez Group of companies and has 3,477 megawatts (MW) of installed capacity from natural gas, geothermal energy from steam, hydroelectric, wind, and solar power. It accounts for 16 percent of the country’s installed capacity.