The Energy Development Corp. (EDC) has secured authority from the Securities and Exchange Commission (SEC) to go ahead and sell fixed-rate ASEAN green bonds worth up to P10 billion.
The bond sale has a base issue size of P6 billion but with provisions for oversubscription of another P4 billion.
EDC, rated the world’s second-largest geothermal energy producer, has priced the bonds at the low end of only 6.7478 percent, 6.8873 percent and 7.0626 percent for the three-, five-, and seven-year series, respectively, and have been rated PRS Aaa with stable outlook by the Philippine Rating Services Corp.
“This second tranche Asean green bonds will support the growth and resiliency of our renewable energy portfolio as we serve the growing economy’s increasing energy needs while pursuing the country’s decarbonization and net zero journey. This will be part of the P60 billion capital investment program the EDC is undertaking for its drilling operations program over the next three years and its renewable energy growth initiatives,” said Jerome Cainglet, EDC president and chief operating officer, in a statement.
Cainglet said the Green Bonds will partially fund the company’s geothermal and battery expansion projects as well as various resiliency and maintenance capital expenditure projects.
EDC said offer period is from 13 to 17 May this year. BDO Capital and Investment Corp. and BPI Capital Corp. were mandated as joint issue managers.
BDO Capital, BPI Capital, China Bank Capital Corp. and SB Capital Investment Corp. were appointed joint lead underwriters and joint bookrunners with RCBC Trust Corp. and RCBC Capital Corp. serving as trustee and the selling agent, respectively, for the transaction.
EDC operates an aggregate 1,464.5 megawatts of clean and renewable energy from geothermal, wind, hydro and solar power sources.
