| By Donnabelle L. Gatdula (The Philippine Star) Updated January 22, 2011 12:00 AM |
MANILA, Philippines – Energy Development Corp. (EDC), the country’s leading renewable energy developer, reported yesterday that it has received the proceeds of its $300 million bond offering due 2021.
In a disclosure to the Philippine Stock Exchange, EDC said it priced its notes last Jan. 13 at the tighter end of an earlier price guidance of 6.5 percent.
The notes, which will be listed on the Singapore Exchange Securities Trading Ltd. or SGX, is the first Philippine corporate bond issued in 2011 and follows the National Government’s successful global peso note issuance.
The company said the notes were sold pursuant to the exemption from registration provided by Regulation S under the United States Securities Act of 1933.
It has hired Deutsche Bank and JP Morgan as joint lead managers for the transaction.
EDC president and COO Richard B. Tantoco said the success of the bond offering is a clear indication of the continuing optimism of the investor community in the Philippine power industry.
“The positive reception by investors is a clear indication of their confidence in 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,” he said.
Tantoco said this is also reflective of EDC’s continuing strive to maintain its lead in energy development.
“It is also a recognition of our strong track record and continuing efforts to manage risks as EDC executes on its growth platforms,” he said.
Tantoco added that the proceeds from the notes will be used to fund EDC’s growth projects, capital expenditures, debt servicing requirements and other general corporate purposes.
The company has lined up a number of rehabilitation programs for its facilities. It intends to rehabilitate its Bacon-Manito geothermal power plant in the second half to bring in an additional 150 megawatt.
It would also be needing fresh funds for its new renewable energy projects, particularly its proposed 86-MW wind farm project in Burgos, Ilocos Norte.
EDC is currently focused on domestic growth as well as overseas expansion, particularly in Asia and Latin America.
EDC also plans to continue reducing its exposure to third foreign currency exchange risk through the redenomination of its yen-denominated debt to peso and dollar-denominated debt.
For the first three quarters of 2010, 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 total country geothermal installed capacity.
In a disclosure to the Philippine Stock Exchange, EDC said it priced its notes last Jan. 13 at the tighter end of an earlier price guidance of 6.5 percent.
The notes, which will be listed on the Singapore Exchange Securities Trading Ltd. or SGX, is the first Philippine corporate bond issued in 2011 and follows the National Government’s successful global peso note issuance.
The company said the notes were sold pursuant to the exemption from registration provided by Regulation S under the United States Securities Act of 1933.
It has hired Deutsche Bank and JP Morgan as joint lead managers for the transaction.
EDC president and COO Richard B. Tantoco said the success of the bond offering is a clear indication of the continuing optimism of the investor community in the Philippine power industry.
“The positive reception by investors is a clear indication of their confidence in 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,” he said.
Tantoco said this is also reflective of EDC’s continuing strive to maintain its lead in energy development.
“It is also a recognition of our strong track record and continuing efforts to manage risks as EDC executes on its growth platforms,” he said.
Tantoco added that the proceeds from the notes will be used to fund EDC’s growth projects, capital expenditures, debt servicing requirements and other general corporate purposes.
The company has lined up a number of rehabilitation programs for its facilities. It intends to rehabilitate its Bacon-Manito geothermal power plant in the second half to bring in an additional 150 megawatt.
It would also be needing fresh funds for its new renewable energy projects, particularly its proposed 86-MW wind farm project in Burgos, Ilocos Norte.
EDC is currently focused on domestic growth as well as overseas expansion, particularly in Asia and Latin America.
EDC also plans to continue reducing its exposure to third foreign currency exchange risk through the redenomination of its yen-denominated debt to peso and dollar-denominated debt.
For the first three quarters of 2010, 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 total country geothermal installed capacity.
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