Business World Online
Posted on June 27, 2011 09:26:00 PM
ENERGY DEVELOPMENT Corp. (EDC) has completed refinancing a $175-million debt after bagging a loan due in 2016 for the same amount, the Lopez-led company yesterday said.
The proceeds of the loan will be used to prolong the repayment period of an earlier loan that would have matured by June 17, 2013, the geothermal plant operator said in a disclosure to the local bourse.
The new loan was arranged by seven banks: Australia and New Zealand Banking Group Ltd. (ANZ), Bank of Tokyo- Mitsubishi Corp. UFJ Ltd., Chinatrust Commercial Bank, ING Bank N.V., Maybank Group, Mizuho Corporate Banking Ltd., and Standard Chartered Bank.
“The new loan effectively lengthens the remaining life of the existing facility from two years to six years and substantially lowers interest costs,” EDC said.
This is on top of the $75-million loan EDC bagged from the International Finance Corp. to partially fund EDC’s medium-term capital expenditure.
In the first quarter, EDC saw its earnings fall to P1.45 billion from P3.77 billion. The reduced earnings “were driven by the suspension of steam sales to the National Power Corp. for BacMan [geothermal power plant] and the ongoing rehabilitation of its steam fields following the acquisition of the power plants in September 2010.”
Shares in EDC closed at P6.62, up 0.76% from its previous close. -- Emilia Narni J. David
The new loan was arranged by seven banks: Australia and New Zealand Banking Group Ltd. (ANZ), Bank of Tokyo- Mitsubishi Corp. UFJ Ltd., Chinatrust Commercial Bank, ING Bank N.V., Maybank Group, Mizuho Corporate Banking Ltd., and Standard Chartered Bank.
“The new loan effectively lengthens the remaining life of the existing facility from two years to six years and substantially lowers interest costs,” EDC said.
This is on top of the $75-million loan EDC bagged from the International Finance Corp. to partially fund EDC’s medium-term capital expenditure.
In the first quarter, EDC saw its earnings fall to P1.45 billion from P3.77 billion. The reduced earnings “were driven by the suspension of steam sales to the National Power Corp. for BacMan [geothermal power plant] and the ongoing rehabilitation of its steam fields following the acquisition of the power plants in September 2010.”
Shares in EDC closed at P6.62, up 0.76% from its previous close. -- Emilia Narni J. David
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