Lopez-owned EDC set to issue $300-M bonds for 2011 capex

By Donnabelle L. Gatdula (The Philippine Star) Updated January 08, 2011 12:00 AM

MANILA, Philippines – Energy Development Corp. (EDC), the renewable energy development unit of the Lopez Group, is set to issue $300 million worth of bonds to finance its capital expenditures this year.

In its disclosure to the Philippine Stock Exchange yesterday, EDC said while its board approved the bond flotation, “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 Limited (SGX-ST),” EDC said.

EDC said proceeds from the bond offering will be used to fund its “growth projects, capital expenditures, debt servicing requirements, and other general corporate purposes.”

According to EDC, it has commissioned two big investment banks, Deutsche Bank and JPMorgan Securities Ltd., to manage the bond offer.

EDC, a subsidiary of First Gen Corp., has earlier signified plans to raise funds this year.

First Gen president Francis Giles Puno said EDC is looking at raising some $200 million from the issuance of dollar bonds to fund its wind power projects.

Puno said the 86-megawatt (MW) Burgos wind project in Ilocos Norte will require an investment of between $240 million to $250 million.

For his part, EDC president Richard Tantoco said negotiations are ongoing between the company and two equipment suppliers for the Burgos wind project.

EDC also expects to finish the rehabilitation of the 150-MW Bacon-Manito (BacMan) geothermal power plant by the second half.

EDC chairman Federico Lopez said they expect to bring the capacity of the power plant up to 150 MW and use that additional capacity and make it available to Visayas and Mindanao consumers.

EDC is the largest producer of geothermal energy in the Philippines to date, accounting for 62 percent of the country’s installed geothermal capacity.

It also owns and operates the 122-MW Pantabangan-Masiway hydroelectric plants.