EDC increasing size of bond offering by 20% to US$ 253 million
Geothermal firm Energy Development Corp. (EDC) is increasing the size of its planned bond offering to P12 billion (US$ 253 million) from the original P10 billion due to strong investor interest.
According to local sources, “geothermal firm Energy Development Corp. (EDC) is increasing the size of its planned bond offering to P12 billion (US$ 253 million) from the original P10 billion due to strong investor interest.
In a filing with the Securities and Exchange Commission, EDC said it will be offering fixed-rate bonds worth P10 billion, with an oversubscription of up to P2 billion.
The bonds are due in June 2015, and December 2016.
Based on the initial filing, EDC planned to issue P6 billion in 5 1/2-year and 7-year bonds, with an oversubscription option of P4 billion.
The company has tapped BDO Capital and Investment Corp. as the issue manager and sole bookrunner for the issuance.
Proceeds will be used to refinance its P11-billion Miyazawa II loan maturing in June next year, and for general corporate purposes.
During the first 9 months of the year, EDC’s net income fell 47.7% to P1.38 billion from P2.65 billion in the same period last year.
The drop in net income was primarily due to P2.9 billion one-time write down of net deferred tax assets in 2009 as well as higher operating and interest expenses.
Revenues for the period, on the other hand, increased 6% to P15.9 billion from P15 billion, owing to a rise in the average price of electricity per kilowatt-hour.
EDC is the Philippines’ largest producer of geothermal power, providing steam to power plants, with total installed capacity of 1,199 megawatts.”
Source: ABS CBN News Philippines