BY VG CABUAG – JUNE 9, 2021
from Business Mirror
The Securities and Exchange Commission (SEC) has approved Energy Development Corp.’s (EDC) public offering of up to P15 billion in fixed-rate Asean green bonds.
In its meeting on June 8, the SEC en banc gave its nod to the registration statement of EDC covering securities under the EDC Asean Green Bond Program which may be issued in one or more tranches within 3 years, subject to certain remaining requirements.
The said debt paper should comply with the Asean Green Bonds Standards, which require that the proceeds should be exclusively applied to finance or refinance, in part or in full, new and existing eligible green projects.
Eligible green projects include renewable energy, energy efficiency, pollution prevention and control, environmentally sustainable management of living natural resources and land use, clean transportation, climate change adaptation and green buildings.
For the first tranche, EDC will offer up to P3 billion of three-year bonds due in 2024 and five-year bonds due in 2026, and an oversubscription option of up to P2 billion.
Proceeds will be used to fund geothermal growth and maintenance capital expenditure (capex) projects, including a portion of the capex for its Palayan Bayan Binary Project, Mindanao III Binary Project, and other geothermal capex for natural catastrophe resiliency, powerplant 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 Corp.
BDO Capital and Investment Corp. and BPI Capital Corp. were assigned as joint issue managers, joint lead underwriters and joint bookrunners for the offering. SB Capital Investment Corp. will serve as co-lead underwriter.