Philippines’ SEC Approves EDC’s PHP6.0 Billion Green Bonds For Renewable Energy Expansion

The Securities and Exchange Commission (SEC) has granted approval for the issuance of the second tranche of Energy Development Corporation’s (EDC) Fixed Rate ASEAN Green Bonds. Valued at PHP6.0 Billion, with an oversubscription option of PHP4.0 Billion, these bonds mark a significant step towards financing renewable energy projects in the Philippines.

Priced competitively at rates ranging from 6.7478% to 7.0626% for the 3-year, 5-year, and 7-year series, the Green Bonds have been awarded a PRS Aaa rating with a stable outlook by the Philippine Rating Services Corporation.

The offer period for these bonds is scheduled from May 13 to 17, 2024. Acting as joint issue managers are BDO Capital & Investment Corporation and BPI Capital Corporation, with BDO Capital, BPI Capital, China Bank Capital Corporation, and SB Capital Investment Corporation appointed as joint lead underwriters and joint bookrunners. RCBC Trust Corporation and RCBC Capital Corporation have been designated as the Trustee and Selling Agent, respectively.

Jerome H. Cainglet, President and COO of EDC, highlighted the pivotal role these Green Bonds play in advancing the company’s renewable energy portfolio. He emphasized their contribution to EDC’s PHP60.0 Billion capital investment program, earmarked for drilling operations and renewable energy growth initiatives over the next three years. The funds from the Green Bonds will specifically support geothermal and battery expansion projects, as well as various resiliency and maintenance capital expenditure initiatives.

EDC, the largest pure renewable energy company in the Philippines, boasts a diverse portfolio comprising 1,170 MW of geothermal, 150 MW of wind, 132 MW of hydroelectric power, and 12 MW of solar power plants. Recognized globally for its wet steam field technology, EDC operates in key locations across the Philippines, including Bicol, Leyte, Negros Island, and Mindanao. Additionally, EDC’s subsidiaries manage a combined wind and solar farm in Burgos, Ilocos Norte, along with significant hydropower assets in Nueva Ecija.

With 18% of the country’s total installed renewable energy capacity and 60% of its geothermal capacity, EDC has cemented its position as a major player in the global renewable energy landscape. The company’s endeavors have solidified the Philippines’ standing as the world’s third-largest geothermal producer, underscoring its commitment to sustainable energy development and environmental stewardship.