EDC gets SEC nod for P10-b ASEAN green bonds offering
By Alena Mae S. Flores – May 13, 2024, 7:00 pm
from manilastandard.net
The Securities and Exchange Commission approved the sale of the second tranche of Energy Development Corp.’s fixed-rate ASEAN Green Bonds totaling P10 billion to support the company’s geothermal drilling operations.
EDC’s parent company First Gen Corp. said in a disclosure to the stock exchange Monday the SEC issued the certificate of permit to offer securities for sale of green bonds on May 10, amounting to a base issue size of P6 billion, with a P4-billion oversubscription option.
“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 Cainglet said.
“This will be part of the P60-billion capital investment program EDC is undertaking for its drilling operations program over the next three years and its renewable energy growth initiatives. In particular, the Green Bonds will partially fund our geothermal and battery expansion projects and our various resiliency and maintenance capital expenditure project,” Cainglet said.
The green bonds are priced at the lowest end of the range of 6.7478 percent, 6.8873 percent and 7.0626 percent for the 3-year, 5-year and 7-year series, respectively. They were rated PRS Aaa, with a stable outlook, by the Philippine Rating Services Corp. The offer period is set on May 13 to 17, 2024.
