The Energy Development Corp. (EDC) has sealed a $90 million loan with the International Finance Corp. (IFC) to fund its capital expenditure for 2018.
EDC disclosed that it signed a 15-year financing agreement with the World Bank’s private sector arm worth $90 million or P4.69 billion**.
“With this most recent financing on the back of previous financings in 2011, 2008, and even an IPO-enabling IFC investment in 2006, EDC & IFC continue to strengthen our partnership. We share a joint commitment to provide sustainable energy sources for the Philippines and to mitigate carbon emissions,” EDC president and COO Richard Tantoco said.
The Lopez-led company said that the loan will fund a part of its 2018 capital requirements and other general corporate purposes of the company’s existing geothermal operations.
EDC added that its capital expenditures (CapEx) include “balance of work related to the return of service of the geothermal power plants in Leyte that were affected by the July 2017 earthquake and other project initiatives aimed at increasing the reliability, efficiency and throughput of EDC’s existing geothermal facilities as well as reducing outages and health, safety & environment (HSE) risks.”
“Securing this financing with IFC further confirms that EDC continues to adhere to the high standards of multi-lateral funding organizations in the aspects of financial discipline, good corporate governance, environmental and social stewardship, safety and security, and fair labor practices.” EDC senior vice president and CFO Nestor Vasay said.
In 2017, EDC’s income and revenues were affected by the 6.5 – magnitude earthquake that hit Luzon as the company’s geothermal assets were damaged.
As of end 2017, EDC and its subsidiaries owns and operates renewable energy projects worth 1,472 MW in total installed capacity.