SEC greenlights EDC’s P10-B green bond offering

The Energy Development Corp. (EDC) said it has obtained approval from the Securities and Exchange Commission (SEC) to issue green bonds worth P10 billion.

In a statement on Monday, the company announced that the offering is the second tranche of EDC’s fixed-rate ASEAN green bonds, part of a shelf registration totaling P15 billion in aggregate principal amount.

The second tranche consists of P6 billion in total principal amount, with an oversubscription option of up to P4 billion.

EDC plans to offer the sale of green bonds from May 13 to May 17.

BDO Capital & Investment Corp. and BPI Capital Corp. have been appointed as joint issue managers.

Additionally, BDO Capital, BPI Capital, Chinabank Capital Corp., and SB Capital Investment Corp. have been named as joint lead underwriters and joint bookrunners.

RCBC Trust Corp. will serve as the trustee, while RCBC Capital Corp. will act as the selling agent for the transaction.

“This second tranche ASEAN green bonds will support the growth and resiliency of our renewable energy portfolio as we serve the growing economy’s increasing energy needs while pursuing the country’s decarbonization and net zero journey,” EDC President and Chief Operating Officer Jerome H. Cainglet said.

Mr. Cainglet said that the green bonds will be part of the company’s P60-billion capital investment program for its drilling operations program over the next three years and its renewable energy growth initiatives.

The green bonds will partially fund the company’s geothermal and battery expansion projects, as well as resiliency and maintenance capital expenditure projects.

EDC said that its green bonds are priced at the lowest end of the range of 6.7478%, 6.8873%, and 7.0626% for the three-year, five-year, and seven-year series, respectively, and have been rated “PRS Aaa,” with a stable outlook by the Philippine Rating Services Corp.

The company listed the first tranche of P5 billion with the Philippine Dealing & Exchange Corp. in 2021.

EDC is a subsidiary of Lopez-led First Gen Corp. that is primarily engaged in the exploration, development, operation, and optimization of geothermal steamfields, and in power generation. — Sheldeen Joy Talavera