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Philippines: EDC intends to borrow $500 million

Alexander Richter Alexander Richter 11 Dec 2008

Energy Development Corp. (EDC), the geothermal power producer of the Lopez family in the Philippines, intends to borrow up to US$ 500 million to finance its capital expenditures and loan payments next year.

Energy Development Corp. (EDC), the geothermal power producer of the Lopez family in the Philippines, intends to borrow up to US$ 500 million to finance its capital expenditures and loan payments next year.

As described in the article from ABS CBN News in the country, about US$ 200 million of the target amount was already secured from the World Bank’s private sector arm, the IFC, while the remaining would be reaised through syndicated loans from several banks. The borrowings are intended to fund the acquistion of government power assets. The company is currently bidding on assets of the National Power Corp. (Napocor) and for that the company might need to borrow even more.

Several banks have provided proposals, which are stydied right now. EDC wants to bid for Napocor assets such as Palinpinon, Tongonan and Bacman. The company would also need to review its hedging program. Source: ABS CBN News