EDC eyes P10-B capital hike from green bonds

Lopez-led Energy Development Corp. (EDC) is expecting to augment its capital by P10 billion from the second tranche of its Fixed Rate ASEAN Green Bonds issuance as approved by the Securities and Exchange Commission (SEC).

The company said on Monday that it received a Certificate of Permit to Offer Securities for Sale for the second tranche of the green bonds amounting to a base issue size of P6 Billion, with a P4 Billion oversubscription option.

“This second tranche ASEAN green bonds will support the growth and resiliency of our renewable energy portfolio as we serve the growing economy’s increasing energy needs while pursuing the country’s decarbonization and net zero journey,” EDC President and COO Jerome H. Cainglet said.

“This will be part of the P60 billion capital investment program that EDC is undertaking for its drilling operations program over the next three years and its renewable energy growth initiatives,” he added.

The Green Bonds will partially fund geothermal and battery expansion projects and various resiliency and maintenance capital expenditure projects.

The Green Bond offerings from 13 to 17 May are priced at the lowest end of the range of 6.74 percent, 6.88 percent, and 7.06 percent for the 3-year, 5-year and 7-year series, respectively. They have been rated PRS Aaa, with a stable outlook, by the Philippine Rating Services Corporation.

BDO Capital & Investment Corp. and BPI Capital Corp. have been mandated to act as joint issue managers, and BDO Capital, BPI Capital, China Bank Capital Corp., and SB Capital Investment Corp. have been appointed as the joint lead underwriters and joint bookrunners.

Meanwhile, RCBC Trust Corporation and RCBC Capital Corporation have been appointed as the Trustee and the Selling Agent, respectively, for the transaction.

EDC is the largest pure renewable energy company in the Philippines, operating 1,170 MW of geothermal, 150 MW of wind, 132 MW of hydroelectric power, and 12 MW of solar power plants— for a total of 1,464.5 MW of clean and renewable energy.

EDC accounts for 18 percent of the country’s total installed renewable energy capacity, and comprises 60 percent of the country’s total installed geothermal capacity based on the Philippines’ 2022 total installed capacity figures as published in the DOE 2003-2022 Power Statistics report. It has put the Philippines on the map as the 3rd largest geothermal producer in the world.