EDC set to refinance P3.5-B retail-bonds debt

by Lenie LecturaMay 18, 2016

from Business Mirror

THE Lopez family’s Energy Development Corp. (EDC) will refinance P3.5-billion retail bonds due in December this year, a company official said.

“We are refinancing the P3.5-billion retail bonds maturing this December. That’s the seven-year bond issued in December 2009,” said EDC Vice President for Finance Erwin Avante, adding it has yet to tap banks to assist the geothermal firm in the refinancing.

Aside from the bonds maturing this December, another P3-billion retail bonds will mature on May 3, 2020, and P4-billion retail bonds will be due on May 3, 2023.

The company is the largest geothermal-energy producer in the country, with 1,169 megawatts of installed capacity in strategic units in Bicol, Leyte, Negros islands and Mount Apo.

Its portfolio of renewable-energy sources covers hydro-, wind- and solar-power projects, namely, the 132-MW Pantabangan-Masiway hydroelectric-power project; the 150-MW Burgos wind project; and the 7-MW Burgos solar 1 and 2 projects. EDC expects its net income this year to remain within the same level as last year, as most of its plants were scheduled to undertake maintenance work.

In 2015 EDC’s recurring net income attributable to the holders of the parent company declined by 4 percent to P8.8 billion.

In the first quarter, EDC President Richard Tantoco said the company shut down the 232.5-MW Malitbog geothermal plant to make way for the installation of new control systems. EDC will also shut down the 112.5-MW Tongonan geothermal plant. It is now on the second and final phase of its plant rehabilitation.

“We are looking forward to the full rehabilitation of the Tongonan units starting second half of 2016. It should be completed early 2017,” Tantoco said.

EDC has set a capital expenditure of P13.6 billion this year.