By Lenie Lectura - March 27, 2017
THE Energy Development Corp. (EDC) on Monday said it issued an invitation to tender notes up to $100 million.
“We advised the exchange that EDC has issued an invitation to holders of EDC’s $300-million, 6.5-percent notes due 2021 to tender notes up to an aggregate principal amount of $100 million for purchase by EDC for cash,” the Lopez-led firm said.
The notes are listed on the Singapore Exchange Securities Trading Ltd.
“The purpose of the offer is to better manage currency risk and better optimize EDC’s debt-maturity profile,” the company said.
EDC expects to announce whether it will accept valid tenders on or around April 5. The offer ends on April 4. EDC earned a net income of P9.72 billion last year, from P7.86 billion in 2015, on the back of stronger revenues recorded at P34.2 billion in 2016.
Core profit reached P9.16 billion in 2016 as against P8.8 billion in 2015.
EDC attributed its improved performance to the robust operation of its geothermal, wind and hydro businesses despite low spot-market prices.
“The Bacman and Nasulo geothermal plants were among the most exposed to last year’s record-low electricity spot-market prices. A reported 25-percent average drop in prices for these plants resulted to a revenue loss of over P1.4 billion full-year,” EDC Chief Financial Officer Nestor Vasay said.