THE Securities and Exchange Commission (SEC) has “favorably considered” Lopez-led Energy Development Corp.’s (EDC) registration of up to P15-billion fixed-rate ASEAN green bonds, the regulator said on Tuesday.
In a statement, the SEC said its commission en banc cleared EDC’s registration statement after a meeting yesterday.
The approved registration covers EDC’s ASEAN green bond program for securities that may be issued in one or more tranches within three years, subject to certain requirements.
ASEAN green bonds comply with the ASEAN Green Bonds Standards, which aim to tap into green financing to support sustainable growth and meet interest for green investments.
“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, with an oversubscription option of up to P2 billion,” the corporate regulator said.
The firm expects to raise P4.93 billion from the offer if the securities are oversubscribed.
“Proceeds will be used to fund geothermal growth and maintenance capital expenditure projects, including a portion of the capex for its (29-megawatt) Palayan Bayan Binary Project, (3.6-megawatt) Mindanao III Binary Project, and other geothermal capex for natural catastrophe resiliency, power plant equipment upgrades, spare parts replacements and other capex projects,” the SEC said.
The bonds will be offered at face value, and will be listed and traded on the Philippine Dealing & Exchange Corp.
EDC tapped BDO Capital & Investment Corp, and BPI Capital Corp. to be the joint issue managers, joint lead underwriters, and joint bookrunners for the offering, while SB Capital Investment Corp. will serve as co-lead underwriter.
EDC ended the first quarter with a 2.1% increase in its net income to P3.3 billion on the back of higher sales.
Shares of EDC’s listed parent firm First Gen Corp. shed 0.32% or 10 centavos to finish at P30.80 apiece in the local bourse on Tuesday.