EDC ties up with Peru firm

By: Amy R. Remo, May 2nd, 2013 09:35 PM

Energy Development Corp., the country’s biggest geothermal producer, has formed a company that will explore and develop a geothermal concession area in Peru.

In a disclosure to the Philippine Stock Exchange Thursday, EDC said its Peru unit, EDC Geotermica SAC, and Hot Rock Peru SA formed Geotermica Quellaapachetta Peru SAC to own and develop the Quellaapachetta concession area.

EDC Geotermica owns a 70-percent interest in the project company, while 30 percent is held by Hot Rock.

According to EDC, it has already paid Hot Rock $400,000 which is refundable in the event that EDC withdraws from the project six months from April 15 or the transfer date.

A final payment of $600,000 will be made 15 months from the transfer date.

On another development, EDC is set to list today P7 billion worth of fixed rate bonds on the Philippine Dealing and Exchange System (PDEx).

EDC had tapped BDO Capital and Investment Corp. as issue manager and sole bookrunner for the transaction.

Proceeds from the bond issuance will be used to fund EDC’s 87-megawatt Burgos wind power project in Ilocos Norte; drilling of new geothermal wells; workover of existing wells, and investments in other geothermal projects.

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