QUICK READ: Energy Development Corporation got their Permit to Sell for the initial tranche of P3 billion.
On June 14, 2021, the Securities and Exchange Commission (SEC) issued the order rendering effective the shelf registration of Energy Development Corporation’s (EDC) P15 billion ASEAN Green Bonds and issued the Permit to Sell for the initial tranche of P3 billion with a P2 billion oversubscription option. The first tranche of bonds have been rated PRS Aaa, with a stable outlook, by the Philippine Rating Services Corporation and will be the first SEC-registered Peso ASEAN Green Bond issuance by a power company in the Philippines. The Green Bonds are priced at the lowest end of the range of 2.8565% and 3.7305% for the 3-year and for the 5-year series, respectively. The offer period is set for June 14 to 18, 2021. BDO Capital and BPI Capital have been mandated to act as Joint Issue Managers and Joint Lead Underwriters and Bookrunners, with SB Capital as Co-Lead Underwriter for the transaction.
“Our maiden green bonds will enable us to expand our 100% clean energy portfolio, which is crucial to decarbonizing our country’s growing economy. In particular, it will fund our geothermal expansion projects and maintenance capital expenditure projects so that we can meet the baseload or 24/7 power needs of our customers” said Richard B. Tantoco, EDC President and COO.
EDC is the largest pure renewable energy company in the Philippines, operating 1,186MW of geothermal, 150MW of wind, 132MW of hydroelectric power, and 12MW of solar power plants—for a total of 1,480MW of clean and renewable energy. Recognized as a world leader in wet steam field technology, the company operates in various locations in the Philippines, including in Bicol, Leyte, Negros Island, and Mindanao. EDC, through its subsidiaries, also operates the biggest combined wind and solar farm in the region, located in Burgos, Ilocos Norte, and has substantial hydropower assets located in Nueva Ecija.
EDC accounts for 19 percent of the country’s total installed renewable energy capacity and comprises 62 percent of the country’s total installed geothermal capacity based on the Philippines’ 2020 total installed capacity figures as published in the DOE 2003-2020 Power Statistics report. It 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.