On May 10, 2024, the Securities and Exchange Commission issued the Certificate of Permit to Offer Securities for Sale for the second tranche of EDC’s Fixed Rate ASEAN Green Bonds amounting to a base issue size of PHP6.0 Billion, with a PHP4.0 Billion oversubscription option (the “Green Bonds”).
The Green Bonds are priced at the lowest end of the range of 6.7478%, 6.8873% and 7.0626% for the 3-year, 5-year and 7-year series, respectively, and have been rated PRS Aaa, with a stable outlook, by the Philippine Rating Services Corporation.
The offer period is set on May 13 to 17, 2024. BDO Capital & Investment Corporation (“BDO Capital”) and BPI Capital Corporation (“BPI Capital”) have been mandated to act as joint issue managers, and BDO Capital, BPI Capital, China Bank Capital Corporation (“Chinabank Capital”), and SB Capital Investment Corporation (“SB Capital”) have been appointed as the joint lead underwriters and joint bookrunners. Meanwhile, RCBC Trust Corporation and RCBC Capital Corporation have been appointed as the Trustee and the Selling Agent, respectively, for the transaction.
“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 PHP60.0 Billion capital investment program that EDC is undertaking for its drilling operations program over the next three years and its renewable energy growth initiatives. In particular, the Green Bonds will partially fund our geothermal and battery expansion projects and our various resiliency and maintenance capital expenditure projects.” said Jerome H. Cainglet, EDC President and COO.
EDC is the largest pure renewable energy company in the Philippines, operating 1,170 MW of geothermal, 150 MW of wind, 132 MW of hydroelectric power, and 12 MW of solar power plants— for a total of 1,464.5 MW of clean and renewable energy. Recognized as a world leader in wet steam field technology, the Company operates in various locations in the Philippines, including in Bicol, Leyte, Negros Island, and Mindanao. EDC, through its subsidiaries, also operates a combined wind and solar farm, located in Burgos, Ilocos Norte, and has substantial hydropower assets located in Nueva Ecija.
EDC accounts for 18 percent of the country’s total installed renewable energy capacity, and comprises 60 percent of the country’s total installed geothermal capacity based on the Philippines’ 2022 total installed capacity figures as published in the DOE 2003-2022 Power Statistics report. It has put the Philippines on the map as the 3rd largest geothermal producer in the world. ##