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EDC to raise $214 million for refinancing and capex on geothermal work

Bacon-Manito geothermal power plant, Philippines (source: First Gen Corp.)
Alexander Richter 24 Jul 2018

EDC in the Philippines plans raising up to $214 million for refinancing purposes and capital expenditure, earmarked largely for geothermal drilling.

Philippines-based Energy Development Corp. (EDC) has announced plans to raise up to P11.5 billion ($214 million) via bilateral term loans to refinance loans and fund its capital expenditure (capex), as reported locally.

In a disclosure to the stock exchange mid-July, EDC secured approval from its board of directors to obtain three-year bilateral loan facilities with various local banks for a total amount of up to P11.5 billion to refinance its $80-million club loan, to fund a portion of its capex program, and for other general corporate purposes.

Vice President for Finance Erwin Avante said the EDC is in talks with up to four banks for the loan facility which could be finalized soon. “We’re looking within this third quarter. We’re talking to three to four banks right now, but haven’t closed yet. The club loan was with two foreign banks. We paid it in June, but EDC paid for it in the meantime with the intention of refinancing it with a portion of this loan.”

EDC officials said in May the Lopez-led firm is setting aside P6.1 billion ($113 million) in capex this year.  The amount is around the same allocated a year ago. The bulk of the capex has been earmarked for geothermal-drilling activities.

The company is the largest geothermal producer in the country in the Philippines operating five geothermal plants in Leyte. These are the 112.5-MW Tongonan, 125-MW  Upper Mahiao, 232.5-MW Malitbog, 180-MW Mahanagdong power plants and the 51-MW optimization plants.

In Negros Island EDC operates two geothermal steam field projects and two geothermal plants under Bac-Man Geothermal Inc. These are the two units of Panlipinon geothermal facility (112.5 MW and 60 MW) and the 49.4-MW Nasulo geothermal plant.

The EDC also operates one geothermal steamfield project in Mindanao, which delivers steam to two EDC-owned geothermal power plants on Mount Apo which have capacities of 52 MW and 54 MW.

Source: Business Mirror