SUNDAY, 23 JANUARY 2011 19:01 PAUL ANTHONY A. ISLA / REPORTER
LISTED Energy Development Corp. (EDC), the country’s largest geothermal producer, said on Friday it has received the proceeds of its $300-million bond offering due 2021.
In a disclosure to the Philippine Stock Exchange, the EDC said it priced its notes on January 13 at the tighter end of an earlier price guidance of 6.5 percent. The EDC dollar bond, which will be listed in the Singapore Exchange Securities Trading Ltd., is the first Philippine corporate bond issued in 2011, and follows the Republic of the Philippines’ successful global peso-note issuance.
The EDC added that the notes were sold pursuant to the exemption from registration provided by Regulation S of the US Securities Act of 1933, as amended. Deutsche Bank and JPMorgan acted as joint lead managers for the transaction.
“The positive reception by investors is a clear indication of their confidence in the EDC’s ability to reinforce its position in the Philippine renewable-energy market and its potential to expand and maintain its position as a leader in the geothermal-energy industry,” said Richard Tantoco, EDC president and chief operating officer.
He added that the bond issuance was also a recognition “of our strong track record and continuing efforts to manage risks as EDC executes on its growth platforms.”
Tantoco said the proceeds from the notes will also be used to fund the EDC’s growth projects, capital expenditures, debt-servicing requirements and other general corporate purposes.
The EDC is currently focused on domestic growth, as well as overseas expansion, particularly in Asia and Latin America.
The EDC also plans to continue reducing its exposure to third-currency-exchange risks through the redenomination of its yen-denominated debt to peso- and dollar-denominated debt.
For the first three quarters of 2010, the EDC posted a net income of P7.58 billion, up 446 percent from P1.39 billion in 2009. It remains the Philippines’ leading producer of geothermal energy, accounting for more than 60 percent of the country’s total geothermal-installed capacity.
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