SEC approves EDC Php15B green bond offer

EDC-SEC

The Securities and Exchange Commission (SEC) has favorably considered Lopez-led Energy Development Corporation’s (EDC) public offering of up to Php15 billion in fixed-rate ASEAN green bonds. 

On Tuesday, the commission en banc cleared EDC’s registration statement covering securities under the company’s ASEAN Green Bond Program, which may be issued in one or more tranches within three years, subject to certain requirements.

The said debt papers adhere to the ASEAN Green Bonds Standards, which require that proceeds be solely used to either finance or refinance new and existing eligible green investments.

Qualified power-related green projects include those employing renewable energy (RE), energy efficiency, clean transportation, and green buildings.

For the first tranche, the RE firm will offer up to Php3 billion of three-year bonds due in 2024 and five-year bonds due in 2026 with an oversubscription option of up to Php2 billion.

Including oversubscription, EDC expects to raise Php4.93 billion from the offer.

The proceeds will be used to fund EDC’s geothermal growth and maintenance capital expenditure projects. A portion of the capex is allocated for its Palayan Bayan binary project, Mindanao III binary project, and geothermal capex for natural disaster resiliency, power facility equipment upgrades, spare parts replacements, and other capex projects.

The bonds will be offered at face value and will be listed and traded on the Philippine Dealing and Exchange Corporation.

In a disclosure to the Philippine Stock Exchange, though, First Gen Corporation said that EDC has yet to receive the SEC’s pre-effective order, which renders the registration statement effective, and the permit to offer securities for sale. First Gen is EDC’s parent firm.

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