EDC raises P5B from green bondsEnergy Development Corporation (EDC) listed P5 billion worth of ASEAN Green Bonds in the Philippine Dealing & Exchange Corporation (PDEx) on June 25, 2021. It is the first tranche to be issued out of its P15-billion ASEAN Green Bonds shelf registration.

EDC president and COO Richard Tantoco led the ceremony, which was attended by representatives from the Securities and Exchange Commission (SEC) and PDEx.

The issuance was more than 10x oversubscribed, allowing EDC to exercise the oversubscription option and raise another P2 billion on top of the base issue size of P3 billion. The first-tranche bonds were priced at the lowest end of the range at 2.8565% and 3.7305% for the three-year and five-year series, respectively.

PDEx president and CEO Antonino Nakpil said of EDC as a returning lister of its corporate bonds: “One might say that EDC was born green, has been walking the green walk long before financial and capital markets even began talking the green talk. We congratulate EDC… and wish it continued greenness and success in all endeavors and hope other issuers follow its lead.”

SEC chairman Emilio Aquino noted: “The commission commends EDC for its Green Bond Framework and its goal to promote a regenerative environment and society while contributing to a low-carbon economy by increasing access to reliable, renewable energy.”

The SEC on June 14, 2021 approved the shelf registration of the EDC ASEAN Green Bonds and issued the permit to sell for the first-tranche bonds. The first-tranche bonds have been rated PRS Aaa, with a stable outlook, by the Philippine Rating Services Corporation and are the first SEC-registered peso-denominated ASEAN Green Bonds to be issued by a power company in the Philippines.

“We are very much delighted with the overwhelming reception of the bond investors considering our last bond issuance was eight years ago. Through the ASEAN Green Bonds, the public is able to support and participate in financing renewable energy projects, which is aligned with our mission of forging collaborative pathways for a decarbonized and regenerative future,” said Tantoco. (Story/Photos by: By Frances Ariola)