The Energy Development Corporation (EDC) listed on Friday its P5-billion ASEAN Green Bonds with the Philippine Dealing & Exchange Corp. (PDEx).
It is the first tranche of the company’s P15-billion ASEAN Green Bonds shelf registration and was more than 10x oversubscribed, allowing EDC to exercise the oversubscription option and raise another P2 billion on top of the base issue size of P3 billion. The first tranche bonds were priced at the lowest end of the range at 2.8565% and 3.7305% for the 3-year and for the 5-year series, respectively.
“We are very much delighted with the overwhelming reception of the bond investors considering our last bond issuance was eight years ago. Through the ASEAN Green Bonds, the public is able to support and participate in financing renewable energy projects, which is aligned with our mission of forging collaborative pathways for a decarbonized and regenerative future,” said EDC President Richard Tantoco during the listing ceremony.
EDC earlier announced the proceeds from the bond issuance will be used to expand its green energy portfolio to help meet the target to reduce carbon emissions by 75% by 2030.
In particular, EDC will use the proceeds to fund its Palayan Bayan binary project, Mindanao 3 binary project, and other geothermal projects.
The 29-megawatt Palayan binary plant, which has an estimated cost of P6.4 billion and is targeted to be completed in 2022, will boost the overall power generation capacity of the existing Bacman geothermal power plant – the 120-MW Bacman I and 20-MW Bacman II.
The company is also constructing the 3.6-MW Mindanao 3 binary plant. Upon its completion in the first half of 2022, this will expand the 52.3-MW Mindanao I and 50.93-MW Mindanao II geothermal power plants in Mt. Apo.
Last June 14, the Securities and Exchange Commission (SEC) approved the shelf registration of the EDC ASEAN Green Bonds and issued the Permit to Sell for the first tranche bonds. The first tranche bonds have been rated PRS Aaa, with a stable outlook, by the Philippine Rating Services Corporation and are the first SEC-registered Peso-denominated ASEAN Green Bonds to be issued by a power company in the Philippines.
BDO Capital & Investment Corporation and BPI Capital Corporation acted as Joint Issue Managers, Joint Lead Underwriters and Bookrunners, and SB Capital Investment Corporation acted as the Co-Lead Underwriter for the transaction.
EDC is the largest pure renewable energy company in the Philippines, operating 1,186 MW of geothermal, 150 MW of wind, 132 MW of hydroelectric power, and 12 MW of solar power plants— for a total of 1,480 MW of clean and renewable energy.
It operates in various locations in the Philippines, including in Bicol, Leyte, Negros Island, and Mindanao. EDC, through its subsidiaries, also operates the biggest combined wind and solar farm in the region, located in Burgos, Ilocos Norte, and substantial hydropower assets located in Nueva Ecija. EDC accounts for 19 percent of the country’s total installed renewable energy capacity, and comprises 62 percent of the country’s total installed geothermal capacity based on the Philippine’s 2020 total installed capacity figures as published in the DOE 2003-2020 Power Statistics report. It has put the Philippines on the map as the third largest geothermal producer in the world.