EDC offers P15-B green bonds to fund RE projects
By Jordeene B. Lagare – March 6, 2021
from The Manila Times
Energy Development Corp. (EDC) has announced its maiden offering of green bonds worth P15 billion to bankroll renewable energy (RE) projects.
The EDC Board of Directors already gave its go-signal to undertake a bond shelf registration program of up to P15 billion.
The Lopez-led company is planning to issue an initial tranche of up to P3 billion with an oversubscription option of up to P2 billion in fixed-rate bonds.
EDC is seeking to list these green bonds on the Philippine Dealing and Exchange Corp. and apply with the Securities and Exchange Commission for the certification of the bonds under the Asean Green Bonds Standards adopted in the Philippines. Asean is the Association of Southeast Asian Nations.
Proceeds from the offering are intended for financing or refinancing of new and existing renewable energy projects that are considered eligible green projects under its Green Bond Framework.
These projects will provide cleaner, reliable power to businesses, institutions and other electricity consumers.
“We’re going full steam ahead to expand our geothermal portfolio with two projects this year, our 45th year of operation. Our 24/7 clean geothermal energy is one of our country’s strengths that will help the transition to a low carbon economy,” Richard Tantoco, EDC president and chief operating officer, said in a statement.
EDC’s push for renewable energy is at the heart of the Lopez Group’s mission “to forge collaborative pathways for a decarbonized and regenerative future.”
“The livable planet that we want for our future generations is achievable if we strive to do more for our ailing environment and our communities and focus on creating shared value, in addition to shareholder value. Shared Value is at the core of being regenerative,” he added.
EDC’s Green Bond Framework is drafted in accordance with the four core components of the International Capital Market Association (ICMA) 2018 Green Bond Principles.
It provides guidelines as to the Eligible Green Projects that can be financed through Green Bonds, the procedures for the selection and evaluation of the projects, the management of the proceeds of the Green Bonds, and subsequent reporting.
Sustainalytics has reviewed and issued a second-party opinion on EDC’s Green Bond Framework.
Sustainalytics, a Morningstar Company, is a leading independent environmental, social and governance (ESG) and corporate governance research, ratings and analytics firm that supports investors around the world with the development and implementation of responsible investment strategies.
It is the largest and most experienced external reviewer of Green Bonds, as recently recognized by the Climate Bonds Initiative in its Green Bond Pioneer Awards.
EDC’s over 1,480 megawatts (MW) total installed capacity accounts for 20 percent of the country’s total installed renewable energy capacity.
Its almost 1,200 MW geothermal portfolio comprises 62 percent of the country’s total installed geothermal capacity and has put the Philippines on the map as the third largest geothermal producer in the world.
