EDC to issue P15 billion green bonds

Feb 10, 2021

MANILA, Philippines — Lopez-led Energy Development Corp. (EDC) plans to issue green bonds worth P15 billion this year as part of its push for green and sustainable power development. 

In a regulatory filing, EDC said it secured board approval to undertake a bond shelf registration of up to P15 billion.

The company is eyeing to offer an initial tranche of up to P3 billion with an oversubscription option of up to P2 billion in fixed rate bonds.

The bond issuance is subject to the approval of the Securities and Exchange Commission (SEC) and will be listed on the Philippine Dealing & Exchange Corp. (PDEx).

“We’re targeting second quarter for the initial tranche. We’re looking at issuing a green bond. Use of proceeds will be mainly for capex and general corporate purposes,” EDC chief finance officer Erwin Avante said in a text message.

Last year, EDC officials said the company was looking at developing binary geothermal projects which could yield an additional 80 megawatts (MW) in capacity once completed in a couple of years.

EDC president and COO Richard Tantoco said the new geothermal projects would expand the company’s existing capacity, particularly in Bacman, Leyte and Mt. Apo.

Avante said the bond proceeds would mainly bankroll the development of the expansion of EDC’s 29-MW Bacon-Manito (BacMan) geothermal power plant which is estimated to cost P6.4 billion,” he said.

EDC earlier tapped two units of Mitsubishi Heavy Industries Group – Italy-based Turboden S.p.A and Mitsubishi Power Ltd. – to provide equipment and local support for its 29-megawatt (MW) binary cycle power generation equipment in Palayan, Albay.

Turboden will provide the complete power generation system, while Mitsubishi Power will provide support through its local resources.

EDC also awarded the engineering, procurement and construction (EPC) contract for the binary project to construction firm First Balfour Inc., also a Lopez firm.

The Palayan binary plant, targeted to be completed in 2022, will boost the overall power generation capacity of the Bacman geothermal power plant, which consists of the 120-MW Bacman I and 20-MW Bacman II.

The company also announced plans to pursue projects in Taiwan, Indonesia, Peru and Chile to further grow its geothermal capacity.

EDC operates 12 geothermal power plants which have a combined installed capacity of 1,204.67 MW, making it the largest vertically-integrated geothermal power producer in the world.

Its other existing projects include the 150-MW Burgos wind farm, the 6.8-MW Burgos Solar plant, the 5.17 MW EDC Siklab solar plant, the 120-MW Pantabangan hydropower plant, and the 12.5-MW Masiway hydropower plant, all have a total capacity of of 1,499.14 MW.