EDC seeks fresh funds for geo projects

Energy Development Corp. (EDC) is undertaking its second refinancing exercise this year to fund the development of more geothermal power projects.

EDC is a unit of the Lopez group’s First Philippine Holdings Corp. (FPH).

“We finished one P6-billion fundraising in March, that’s for Green Core (geothermal). Now, it’s BacMan (Bacon-Manito geothermal project),” FPH chief finance officer Francis Giles B. Puno told reporters on the sidelines of a forum organized by Economic Journalists Association of the Philippines and ING in Makati City.

Puno said the fundraising for its 140-megawatt (MW) BacMan geothermal power plant complex in Albay and Sorsogon would entail seven-year loans from a group of local banks.

“We also have P5 billion in maturing bonds this year. So effectively, it’s almost like refinancing,” Puno said.

The P5 billion in fresh loans this July will be used to settle shareholder advances for the rehabilitation of BacMan.

In effect, the fundraising exercise will free up cash for other “growth projects” such as steamfield development and predevelopment activities for a new unit of BacMan, company vice president for Finance Erwin O. Avante said.

EDC has an outstanding bond float worth P12 billion—P8.5 billion will mature this month, while P3.5 billion is due in December 2016.

EDC is expected to borrow funds from local banks.