ENERGY Development Corporation (EDC)
has received the proceeds of its $300-million bond offering due 2021. EDC priced its notes on January 13 at the tighter end of an earlier price guidance of 6.5%.
EDC’s notes, which will be listed on the Singapore Exchange Securities Trading Limited or SGX, is the first Philippine corporate bond issued in 2011, and follows the Philippines’ successful global peso note issuance.
The notes were sold pursuant to the exemption from registration provided by Regulation S under the United States Securities Act of 1933, as amended (the US Securities Act). Deutsche Bank and J.P. Morgan acted as joint lead managers for the transaction. “The positive reception by investors is a clear indication of their confidence in EDC’s ability to reinforce its position in the Philippine renewable energy market and its potential to expand and maintain its position as a leader in the geothermal energy industry. It is also a recognition of our strong track record and continuing efforts to manage risks as EDC executes on its growth platforms,” said Richard Tantoco, EDC president and COO.
Tantoco added that the proceeds from the notes will be used to fund EDC’s growth projects, capital expenditures, debt servicing requirements and other general corporate purposes. EDC is currently focused on domestic growth as well as overseas expansion, particularly in Asia and Latin America. EDC also plans to continue reducing its exposure to third foreign currency exchange risk through the redenomination of its yendenominated debt to peso- and dollar-denominated debt.