EDC to raise new debt financing for BacMan plant complex
Bacon-Manito geothermal power plant, Philippines (source: First Gen Corp.)
Francisco Rojas
15 Jun 2015
"The P5 billion ($111m USD) in fresh loans this July will be used to settle shareholder advances for the rehabilitation of BacMan."
Local news from the Philippines state that Energy Development Corp. (EDC) is undertaking its second refinancing exercise this year to fund the development of more geothermal power projects.
“We finished one P6-billion ($133m USD) fundraising in March, that’s for Green Core (geothermal). Now, it’s BacMan (Bacon-Manito geothermal project),” FPH chief finance officer Francis Giles B. Puno told reporters on the sidelines of a forum organized by Economic Journalists Association of the Philippines and ING in Makati City.
“We also have P5 billion ($111m USD) in maturing bonds this year. So effectively, it’s almost like refinancing,” Puno said.
The P5 billion in fresh loans this July will be used to settle shareholder advances for the rehabilitation of BacMan.
In effect, the fundraising exercise will free up cash for other “growth projects” such as steamfield development and predevelopment activities for a new unit of BacMan, company vice president for Finance Erwin O. Avante said.
EDC has an outstanding bond float worth P12 billion ($266m USD) — P8.5 billion will mature this month, while P3.5 billion is due in December 2016.
EDC is expected to borrow funds from local banks.
Source: Business Inquirer
