Friday, January 7, 2011

EDC to sell $300M in bonds

Business World Online

Posted on 07:36 PM, January 07, 2011

LOPEZ-LED Energy Development Corp. (EDC) plans to raise $300 million from an international bond sale to finance projects and repay debt.

The geothermal power producer told the Philippine Stock Exchange on Friday proceeds of the bond sale, which has been approved by the company’s board, will be used to fund "growth projects, capital expenditures, debt servicing requirements, and other general corporate purposes."

"The final terms, size and timing of the bonds’ issuance shall be determined based on prevailing market conditions. Upon issue, the bonds are intended to be listed on the Singapore Exchange Securities Trading Ltd.," EDC said in its disclosure.

Deutsche Bank and JPMorgan Securities Ltd. will act as joint lead managers.

EDC runs the 305-megawatt (MW) Tongonan 1 and the 192-MW Palinpinon geothermal power plants in Leyte, as well as the 150-MW Bacon-Manito geothermal plant in Albay.

EDC’s net income rose by 446% to P7.58 billion at the end of September 2010 from P1.39 billion in the same period in 2009. Core profit rose by 27% to P6.44 billion from P5.08 billion in the same period the year previous.

The increase was attributed to the writedown of P3 billion in deferred tax assets in 2009 following to the implementation of the Renewable Energy Act, and P1.7 billion in other income reported in 2010 with the recovery of an impairment provision in the company’s input value-added tax claims.î

Revenues grew by 21% to P19.3 billion in the nine-month period from 2009’s P15.9 billion. Electricity sales increased by 71% to P17.5 billion from P10.2 billion. --
E. N. J. David

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