The Energy Development Corporation (EDC) is retiring $100 million worth of Singapore Exchange-listed notes to manage currency risk and optimize its debt profile.
The Lopez group disclosed that it launched a cash tender offer yesterday to buy $100 million of $300 million 6.5 percent notes due 2022, which are listed on the Singapore Exchange Securities Trading Limited (SGX-ST).
“The purpose of the offer is to better manage currency risk and better optimize EDC’s debt maturity profile,” the company said.
EDC said that the tender offer will give noteholders the opportunity to gain liquidity.
The offer is scheduled to end on April 4, 2017, unless it is extended or terminated by EDC.
The tendered notes should meet financing conditions by EDC.
EDC is looking to announce whether they will accept valid tenders, the final aggregate nominal amount of notes for purchase and the final aggregate nominal amount which remain outstanding on April 5.
Upon acquisition, EDC said that the notes will be canceled and will not be re-issued or re-sold.
In 2016, EDC’s consolidated income rose 24 percent to P9.72 billion, while its core net income increased four percent to P9.2 billion following improved performance and lower operating expenses of the Negros Island and First Gen Hydro business units.