EDC allowed to double capital stock to US$ 646 million
Alexander Richter
13 Oct 2009
Energy Development Corp. (EDC) was allowed by the Securities and Exchange Commission (SEC) on Tuesday to increase its capital stock to P30.150 billion (US$ 646 million) from P15.075 billion (US$ 323 million).
According to local news, “Energy Development Corp. (EDC) was allowed by the Securities and Exchange Commission (SEC) on Tuesday to increase its capital stock to P30.150 billion (US$ 646 million) from P15.075 billion (US$ 323 million).
EDC disclosed to the Philippine Stock Exchange that the increase will be divided into 30 billion common shares with a par value of P1 per share and 15 billion preferred shares with a par value of P0.01 each, or an aggregate par value of P150 million.
The P150-million par value of the preferred share, EDC said, will be undertaken through the issuance of common-stock dividend amounting to 3.750 billion common shares, with any fractional shares being subscribed by the EDC Retirement Fund and/or Trust for the EDC Executive/Employee Stock Ownership plan.
It will also be done by the subscription by the current preferred stockholders to 1.875 billion preferred shares or 25 percent of the increase in the preferred shares at par value.
EDC said the stock dividends from the increase will be distributed to stockholders on October 27; the payment date will be a little less than a month later, on November 23.
EDC earlier expressed confidence investors would respond positively to its upcoming bond issuance after securing an Aaa rating from PhilRatings.
“Getting the highest possible corporate-credit rating affirms EDC’s good credit standing and excellent fiscal management. The rating definitely provides the necessary push to make our bonds more attractive to investors and gives us enough reason to expect a successful issuance,” Richard Tantoco, EDC president and chief operating officer, said.
EDC said it applied for registration with the SEC for bonds of up to P10 billion. However, its Aaa rating qualifies the country’s leading geothermal firm for bonds of up to P12 billion.
PhilRatings cited EDC’s strong cash-flow generation, ample liquidity and financing sources to cover maturing debt and operating requirements, reduced exposure to foreign currency risk, improving profitability, leadership in the geothermal industry, and experienced management team, as plus factors for its getting the highest possible corporate credit rating.
EDC earlier issued P9-billion fixed-rate corporate notes which elicited strong investor take-up.? EDC’s maiden debt issue in the domestic capital markets was 2.5 times oversubscribed and was upsized from its original issue size of P3 billion.
“We are confident our net income will stay robust, given our acquisition of the Tongonan and Palinpinon geothermal plants, long-term contracts with the National Power Corp., our local and overseas expansion, and the Renewable Energy Act benefits which we will take advantage of as we continue to invest in environment-friendly resources,” Tantoco said.
EDC remains the country’s leading producer of geothermal energy accounting for 62 percent or 1,199-megawatt (MW) of the 1,980-MW total installed capacity. ?
EDC is also positioning itself as the premier pure, renewable-energy player in the Philippines with its acquisition of 60- percent equity in the Pantabangan-Masiway hydroelectric project and the development of an 86-MW wind farm in Burgos, Ilocos Norte.?”
Source: Business Mirror
