EDC ready to issue debt notes worth P7B

Energy Development Corp., the country’s biggest producer of geothermal energy, has signed a facility agreement for the planned issuance of P7-billion fixed rate corporate notes.

In a disclosure to the Philippine Stock Exchange, EDC said RCBC Capital Corp. and SB Capital Investment Corp. would act as joint issue managers and joint lead arrangers. PNB Capital and Investment Corp. was also appointed joint lead arranger for the transaction.

“The new fixed rate corporate notes will have a tenor of 10 years at an interest rate to be determined prior to their issuances,” EDC said.

In a text message, EDC president Richard Tantoco said that “practically 100 percent” of the proceeds from the issuance of fixed rate corporate notes would be used for refinancing.

“Our Series 1 and 3 fixed rate corporate notes have P2.7 billion outstanding with final maturity in 2014, while our P4 billion Series 2 has a final maturity of 2016,” Tantoco explained.

For this year, EDC has allocated P12.3 billion for capital expenditures, the bulk of which will be poured into a single renewable energy project. Of this amount, 48 percent, or P5.76 billion, will fund the Burgos wind project.

Also, 11.6 percent of the total capex budget for this year, or P1.43 billion, will be used to rehabilitate Green Core Geothermal Inc. and Bacman Geothermal Inc., both of which are wholly owned subsidiaries of EDC.

The capex budget also included expenditures amounting to P1.855 billion for the acquisition of two drilling rigs to support exploration activities within prospective geothermal areas.