By Danessa Rivera (The
Philippine Star) | Updated May 18, 2016 - 12:00am
MANILA, Philippines – Lopez-led
Energy Development Corp. (EDC) plans to borrow P3.5 billion towards the end of
the year to refinance maturing loans, a company official said.
EDC vice president for corporate
finance Erwin Avante said the company may need to raise funds to refinance a
maturing loan in December.
“We have a P3.5-billion loan
maturing in December this year so it’s a refinancing,” he said.
The maturing P3.5-billion retail
bond, issued in 2009, was used to partly finance outstanding loans, projects
and other general corporate purposes.
Avante also said the company is also
open to raise fresh funds if there are merger and acquisition opportunities.
EDC has programmed P14 billion for
capital expenditures this year to increase the reliability of its aging
facilities and for drilling projects.
In 2015, its capex was around P10-12
billion.
EDC said this year’s budget will
address reliability issues of its 3x112.5-megawatt (MW) Tongonan geothermal
plant in Leyte to mitigate the loss in revenues.
The outages of Tongonan has cost the
company about P700 million in revenues last year.
Part of the 2016 budget would also
be dedicated to the optimization of the 125-MW Upper Mahiao goethermal plant.
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