EDC gets fund boost from IFC

Energy Development Corp. (EDC) has secured a $90-million financing agreement with World Bank’s International Finance Corp. (IFC) to cover part of its 2018 funding needs.

“Securing this financing with IFC further confirms that EDC continues to adhere to the high standards of multilateral funding organizations in the aspects of financial discipline, good corporate governance, environmental and social stewardship, safety and security and fair labor practices,” EDC senior vice president and chief financial officer Nestor Vasay said in a statement.

The Lopez group unit said proceeds from the 15-year deal would be used to fund a portion of its 2018 capital requirements and expenses of its geothermal operations.

Such expenses include the remaining work related to bringing back online the geothermal power plants in Leyte that were affected by the July 2017 earthquake.

EDC said there were also other project initiatives aimed at increasing the reliability, efficiency and throughput of its existing geothermal facilities, as well as reducing outages and health, safety and environment risks.

“With this most recent financing on the back of previous financing in 2011 and 2008, and even an IPO-enabling IFC investment in 2006, EDC and IFC continue to strengthen our partnership,” said EDC president and chief operating officer Richard Tantoco.

“We share a joint commitment to provide sustainable energy sources for the Philippines and to mitigate carbon emissions,” Tantoco added.

As of the end of 2017, EDC and its subsidiaries own and operate a portfolio of renewable energy projects—geothermal, hydro, wind and solar projects—in the Philippines with a total installed capacity of 1,472 megawatts. —RONNEL W. DOMINGO