Geothermal leader Energy Development Corporation (EDC) successfully listed its Php7 billion Fixed Rate Bonds at the Philippine Dealing and Exchange Corp. (PDEx). The Bonds were almost 2x oversubscribed.
The Bonds are comprised of Php3 billion 7-year Fixed Rate Bonds and Php4 billion 10-year Fixed Rate Bonds due on May 3, 2020 and May 3, 2023, respectively. The 7-Year Bonds have a fixed interest rate of 4.1583 per cent per annum while the 10-Year Bonds have a fixed interest rate of 4.7312 per cent per annum.
“We’re overwhelmed by the strong investor interest which we believe can be attributed to EDC’s PRS Aaa rating, our robust financial condition and the very favorable macroeconomic climate that the Philippines is enjoying today. The proceeds will be used to support our expansion and fund our new businesses particularly our wind energy projects,” EDC President and COO Richard Tantoco said.
PhilRatings assigned an issue credit rating of PRS Aaa for EDC’s Bonds. The ratings agency cited EDC’s reinforced sustainable revenue stream and strong cash flow generation, enhanced standing as the leading vertically integrated geothermal power producer in the country, financial flexibility, as well as improved debt profile, proactive stance in addressing emerging trends in the power sector and improved profitability.
EDC posted a net income of Php10.37 billion for the year ending December 31, 2012, up 1,588 per cent from Php614.8 million in 2011. It recently broke ground for its 87-MW Burgos wind energy project in Ilocos Norte.
The Joint Lead Underwriters for EDC’s Php7 billion fixed rate bonds are BDO Capital & Investment Corporation, BPI Capital Corporation, Development Bank of the Philippines, Philippine Commercial Capital, Inc., RCBC Capital Corporation, and SB Capital Investment Corporation while BDO Capital & Investment Corporation was the issue manager and sole bookrunner.
EDC remains the country’s leading producer of geothermal energy accounting for 62 per cent of the total country installed geothermal capacity. It has also obtained geothermal concessions in Chile and Peru.
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.