Energy Development Corp. or EDC, the renewable energy subsidiary of Lopez-led First Gen Corp., is targeting to raise P10 billion from the launch of the second tranche of its shelf-registered ASEAN Green Bond Program.

In a stock exchange disclosure on Wednesday, First Gen Corp. said EDC has secured the approval of its Board of Directors for the new round of green finance-raising activity.

However, the company said it would still need to secure the approval of both the Securities and Exchange Commission and the Philippine Dealing and Exchange Corp.

EDC has not provided additional information on the terms of the new issuance, but it is worth noting that the company issued the first tranche of its ASEAN Green Bond Program in 2021, raising P5 billion to fund projects.

Green bonds are a type of debt security that is sold to raise capital for projects that help mitigate climate change and benefit the environment. This includes renewable energy, which is a major focus of EDC's business.

During the first nine months of the year, EDC, through the higher contribution of its geothermal portfolio, primarily helped First Gen generate double-digit growth in its bottom-line profits.

First Gen's attributable recurring net income during the period grew by 28 percent to P13.8 billion from P10.2 billion a year ago.