EDC to raise up to $104m in bond issuance for geothermal expansion and capex

EDC to raise up to $104m in bond issuance for geothermal expansion and capex BacMan geothermal field, Batangas, Philippines (source: Julius Balbin)
Alexander Richter 9 Feb 2021

Philippines based EDC is seeking to raise up to $104 million in a green bond issuance to fund capital expenditures for the planned geothermal binary plant addition to the Bacman geothermal complex.

In a disclosure, Philippines geothermal power company Energy Development Corp. (EDC) reports that its board of directors has approved the issuance  of bonds with a value of up to P5 billion (around $104m) in Q2 of 2021 to finance capital expenditures.

This part of a larger shelf registration of up to P15 billion ($312 m), subject to approval of the Philippines Securities and Exchange Commission.

“We’re targeting second quarter for the initial tranche. We’re looking at issuing a green bond. Use of proceeds will be mainly for capex and general corporate purposes,” EDC chief financial officer Erwin Avante said.

The sought funding would be for capital expenditure over a three year period, while the first junk to be used to finance up to P6.4m for the capital expenditure of the 28 MW Bacman binary geothermal power project.

We recently reported on the company having awarded a contract for the supply of the plant to Turboden S.p.A. of Mitsubishi Heavy Industries Ltd. and Mitsubishi Power Ltd. of Japan for the binary cycle power generation equipment to be installed at its Bacman geothermal power plant in Manito, Albay. The project is to be completed by the end of 2022.

Separately we reported that construction firm First Balfour has been contracted for the EPC part of the project for the Palayan Binary Plant works package. The work entails the installation of required equipment to utilise brine flow from the existing EDC steam field at the Bacman plant.

Source: Manila Standard