LISTED Energy Development Corp. (EDC), the country’s largest geothermal producer, said Friday that its board has approved the recommendation for an international dollar bond offering to fund its planned expansion projects and to refinance its debts.
In a disclosure to the Philippine Stock Exchange, EDC said bond offering will amount to $300 million.
The EDC made it clear that the final terms, size and timing of the bonds’ issuance shall be determined based on prevailing market conditions.
Upon issue, the EDC said that the bonds are intended to be listed on the Singapore Exchange Securities Trading Limited (SGX-ST).
The EDC said proceeds from the bond offering are intended to be used to fund the company’s growth projects, capital expenditures, debt-servicing requirements, and other general-corporate purposes.
The EDC also noted that the Deutsche Bank and JPMorgan Securities Ltd. would act as the joint lead managers for the transaction.
In June last year, the EDC settled ¥22 billion of its Miyazawa-II debt. The payment, according to EDC, has reduced to 13 percent its yen-denominated loans
During the first half of 2010, the EDC successfully hedged the dollar-yen exposure of its entire ¥22 billion, which has benefited the company about P181.1 million.
The Miyazawa II loan was among the legacy loans which the Philippine National Oil Co.-Energy Development Corp. (PNOC-EDC) carried over into the present day’s fully private EDC. It was used to fund the investment and working capital requirements of PNOC-EDC’S operating projects shortly after the Asian financial crisis.
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