The Securities and Exchange Commission (SEC) has approved Energy Development Corp.’s (EDC) P15-billion Asean green bonds.
Asean Green Bonds refer to bonds and sukuk which comply to standards, where the proceeds will be exclusively applied to finance or refinance, in part or in full, new and/or existing eligible green projects.
For the first tranche of the bond, EDC said it will offer up to P3 billion of the three-year bonds due 2024 and a five-year bonds due 2026, with an oversubscription option of up to P2 billion.
“The company expects to net up to P4,932,288,095 billion from the offer, assuming the oversubscription option is fully exercised,” the SEC said.
The proceeds will be used to fund geothermal growth and maintenance capital expenditure projects, including a portion of the capex for its Palayan Bayan and Mindanao III binary projects, and other geothermal capex for natural catastrophe resiliency, powerplant equipment upgrades, spare parts replacements and other capex projects.