EDC to raise P7B from notes issue to pay debts

MANILA, Philippines - Energy Development Corp. (EDC), the renewable energy arm of the Lopez Group, plans to raise P7 billion through the issuance of corporate notes to pay off its existing debts.

In a disclosure, the company said it “signed a facility agreement for the issuance of P7 billion fixed-rate corporate notes (FXCN).”

“The company will use the proceeds to refinance its existing FXCNs, which has an average remaining life of approximately two years and for general corporate purposes,” EDC said.

The new corporate notes will have a maturity of 10 years. The interest rate has yet to be determined prior to the issuances, the firm said.

EDC has topped RCBC Capital Corp. and SB Capital Investment Corp. as joint issue managers and joint lead arrangers. PNB Capital & Investment Corp. will also be a joint lead arranger for the transaction.

EDC is the largest producer of geothermal energy in the Philippines, with an aggregate capacity of 1,130 megawatts. It is also the largest integrated geothermal power company in the world.

EDC and Australian partner Hot Rock Ltd. control a 70-percent stake in four geothermal projects in Chile and Peru.

Aside from geothermal projects, the company also owns and operates the 132-MW Pantabangan-Masiway hydroelectric plants, and has investments in wind energy projects in Ilocos Norte and other provinces.

In March, the firm said it surrendered to the Department of Energy its service contracts for three wind energy projects in Taytay, Dinagat and Siargao given the lack of commercial viability.

Last year, EDC’s profit slumped 86 percent to P615 million due to lower steam sales.