Energy Development Corporation (EDC) is confident investors will respond positively to its upcoming bond issuance after securing an Aaa rating from PhilRatings. “Getting the highest possible corporate credit rating affirms EDC’s good credit standing and excellent fiscal management. The rating definitely provides the necessary push to make our bonds more attractive to investors and gives us enough reason to expect a successful issuance,” EDC President & COO Richard Tantoco said.
The company applied for registration with the Securities and Exchange Commission (SEC) for bonds of up to PhP10 billion. However, its Aaa rating qualifies the country’s leading geothermal firm for bonds of up to PhP12 billion.
PhilRatings cited EDC’s strong cash flow generation, ample liquidity and financing sources to cover maturing debt and operating requirements, reduced exposure to foreign currency risk, improving profitability, leadership in the geothermal industry, and experienced management team as the plus factors for its getting the highest possible corporate credit rating.
EDC earlier issued PhP9 billion fixed rate corporate notes which elicited strong investor take-up. In fact, EDC’s maiden debt issue in the domestic capital markets was 2.5 times oversubscribed and was upsized from its original issue size of PhP3 billion.
“We are confident our net income will stay robust given our acquisition of the Tongonan and Palinpinon geothermal plants, long-term contracts with National Power Corporation, our local and overseas expansion, and the Renewable Energy Act benefits which we will take advantage of as we continue to invest in environment-friendly resources,” Tantoco explained.
EDC remains the country’s leading producer of geothermal energy accounting for 62 percent or 1,199 MW of the 1,980 MW total installed capacity. It is now positioning itself as the premier pure renewable energy player in the Philippines with its acquisition of 60 percent equity in the Pantabangan-Masiway hydroelectric project and the development of an 86-MW wind farm in Burgos, Ilocos Norte.
The Energy Development Corporation (EDC) is a pioneer in generating 100% clean, renewable, and reliable power as an electricity supplier in the Philippines for over 40 years. With power plants all over Visayas and Mindanao, the company is one of the biggest producers of geothermal energy in Asia and is expanding its reach in the international market, allowing it to offer customers affordable energy rates. EDC also strives to provide the best customer service it can to all its clients by having helpful salespeople and easy to understand contracts. Because of all of this, it is poised to become the premier supplier of electricity for the Philippines’ Green Energy Option Program. EDC takes its mission as a renewable energy provider seriously and goes beyond sustainability by investing in programs that enhance the environment and empower its partner communities, thereby fostering regenerative development. The company has also been working toward being carbon-neutral by improving its energy efficiency, as well as implementing various greening projects to ensure that its mission to provide future generations with a better life remains intact.