EDC to raise P11.5 billion for bilateral loans, capex

By Lenie Lectura – July 12, 2018
from Business Mirror

LOPEZ-led Energy Development Corp. (EDC) will raise P11.5 billion via bilateral term loans to refinance loans and fund its capital expenditure (capex).

In a disclosure to the stock exchange on Thursday, EDC secured approval from its board of directors to obtain three-year bilateral loan facilities with various local banks for a total amount of up to P11.5 billion to refinance its $80-million club loan, to fund a portion of its capex program, and for other general corporate purposes.

Vice President for Finance Erwin Avante said the EDC is in talks with up to four banks for the loan facility which could be finalized soon. “We’re looking within this third quarter. We’re talking to three to four banks right now, but haven’t closed yet. The club loan was with two foreign banks. We paid it in June, but EDC paid for it in the meantime with the intention of refinancing it with a portion of this loan.”

EDC officials said in May the Lopez-led firm is setting aside P6.1 billion in capex this year.  The amount is around the same allocated a year ago. The bulk of the capex has been earmarked for geothermal-drilling activities.

The company is the largest geothermal producer in the country. It has also expanded to other sources like wind, solar and hydropower. It has a total installed geothermal capacity of 1,457 megawatts (MW).  EDC’s power generation in 2016 represented about 9 percent of the Philippines’s total power- generation capacity.

The EDC operates five geothermal plants in Leyte. These are the 112.5-MW Tongonan, 125-MW  Upper Mahiao, 232.5-MW Malitbog, 180-MW Mahanagdong power plants and the 51-MW optimization plants.

In Negros Island EDC operates two geothermal steam field projects and two geothermal plants under Bac-Man Geothermal Inc. These are the two units of Panlipinon geothermal facility (112.5 MW and 60 MW) and the 49.4-MW Nasulo geothermal plant.

The EDC also operates one geothermal steamfield project in Mindanao, which delivers steam to two EDC-owned geothermal power plants on Mount Apo which have capacities of 52 MW and 54 MW.