QUICK READ: Part of EDC’s mission to be regenerative is to create shared value, which the company intends to do by launching its Green Bond Framework.
Lopez-led renewable energy leader Energy Development Corporation (EDC) is launching its maiden Green Bond Framework as a fitting celebration for its 45th anniversary today.
EDC’s push for renewable energy is at the heart of the Lopez Group’s mission “to forge collaborative pathways for a decarbonized and regenerative future.” The conglomerate’s new 10-word purpose aims to even go beyond sustainability that only seeks to do less harm by elevating everything that it touches—whether it be its employees, the communities where it operates, the environment, its customers, and other partners such as creditors, suppliers, and contractors.
“The livable planet that we want for our future generations is achievable if we strive to do more for our ailing environment and our communities and focus on creating shared value, in addition to shareholder value. Shared value is at the core of being regenerative, ”said Richard B. Tantoco, EDC President and COO.
As previously disclosed, the Board of Directors of EDC had approved the undertaking of a Bond Shelf Registration of up to P15 billion, and the offer and issuance of an initial tranche of up to P3 billion with an oversubscription option of up to P2 billion fixed rate bonds, subject to the approval of the Securities and Exchange Commission (SEC), to be listed on the Philippine Dealing & Exchange Corporation. EDC intends to also apply with the SEC for the certification of the bonds under the ASEAN Green Bonds Standards adopted in the Philippines.
The bond issuance of EDC is intended for the financing or refinancing of new and existing renewable energy projects that are considered Eligible Green Projects under its Green Bond Framework. These projects will provide cleaner, reliable power to businesses, institutions, and other electricity consumers.
“We’re going full steam ahead to expand our geothermal portfolio with two projects this year, our 45th year of operation. Our 24/7 clean geothermal energy is one of our country’s strengths that will help the transition to a low-carbon economy,” emphasized Tantoco.
Being able to provide reliable, stable, and low-carbon baseload power all year round, rain or shine, makes geothermal power the most ideal source of renewable energy or what EDC refers to as Geo 24/7. What makes it even more beneficial is its need for lush forests for steam recharge, something that EDC has achieved using the threatened Philippine native tree species that it is bringing back to abundance through the BINHI forest restoration program.
EDC’s Green Bond Framework is drafted in accordance with the four core components of the International Capital Market Association (ICMA) 2018 Green Bond Principles. It provides guidelines as to the Eligible Green Projects that can be financed through Green Bonds, the procedures for the selection and evaluation of the projects, the management of the proceeds of the Green Bonds, and subsequent reporting.
Sustainalytics has reviewed and issued a Second-Party Opinion on EDC’s Green Bond Framework. Sustainalytics, a Morningstar Company, is a leading independent Environmental, Social, and Governance (ESG) and corporate governance research, ratings, and analytics firm that supports investors around the world with the development and implementation of responsible investment strategies. It is the largest and most experienced external reviewer of Green Bonds, as recently recognized by the Climate Bonds Initiative in its Green Bond Pioneer Awards.
Sustainalytics has noted that EDC’s Green Bond Framework is credible and impactful, highlights the key aspects of the Green Bond Framework, and confirms the alignment of the framework to the Green Bond Principles and EDC’s sustainability strategy. It also shows the efforts of EDC and positive sustainability aspects of the bonds that will be issued under the framework.
EDC’s over 1,480MW total installed capacity accounts for 20 percent of the country’s total installed renewable energy capacity. Its almost 1,200MW geothermal portfolio comprises 62 percent of the country’s total installed geothermal capacity and has put the Philippines on the map as the third largest geothermal producer in the world.
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.