By Lenie Lectura - May 10, 2017
THE Lopez-led Energy Development
Corp. (EDC) is looking to borrow up to P2 billion to refinance the geothermal
firm’s debts.
“For borrowings, I think we recently
disclosed we borrowed and signed about P8.5 billion; this is really to
refinance. Maybe in the next few weeks, we will probably sign up additional P1
billion to P2 billion to refinance our existing loans,” EDC Vice President
for Finance Erwin Avante said.
He said EDC’s maturing loans next
year will amount to $72 million.
EDC recently offered to purchase up
to $100 million of its outstanding $300-million notes due in 2021, listed on
the Singapore Exchange Securities Trading Ltd.
On April 7 EDC said
it accepted $65.92 million worth of valid tenders from holders of notes
carrying an interest of 6.5 percent.
This, it added, is part of its
“liability management exercise” so it can improve debt profile.
EDC also borrowed P3.5 billion
from Union Bank of the Philippines to refinance existing loans. The facility
was a fixed, 15-year amortizing loan.
EDC Chief Financial Officer Nestor
Vasay said the company has capitalized on the liquid domestic financial market
and successfully replaced its more expensive loans with cheaper peso
liabilities, thus reducing loan-interest rates.
This financial exercise, he added,
also resulted in the extension of the company’s maturities and converting
bullet repayments into amortizing loans.
The company has set aside P7 billion
in capital expenditure (capex) this year. This is lower than the previous
year’s P8.2-billion capex.
Of the total amount, P3 billion will
be used to rehabilitate the 112.5-megawatt (MW) Tongonan geothermal plant in
Leyte.
About P500 million of this year’s
capex would be spent to upgrade the 125-MW Mahiao plant.
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