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IFC open to further equity investment in EDC

Palinpinon geothermal plant, Philippines (source: Commons/ Wikimedia)
Alexander Richter 12 Jul 2010

The private arm of the Word Bank the International Finance Corp. is open to increasing its investments in Energy Development Corp. (EDC) in the Philipppines.

“International Finance Corp., a unit of the World Bank that provides developmental loans to the private sector, is open to increasing its investments in Lopez-led Energy Development Corp. to support its power projects.”, so recent news from the Philippines.

“I think we’ve put enough equity in EDC already, but we will continue to support them as they need (additional support). We probably would (increase our investments in EDC),” said IFC Philippines resident representative Jesse O. Ang.

“We put in the equity in the beginning because it was a key investment. Now it is a fully privatized company, so I think it was a good thing to do,” Ang said.

“When asked by how much IFC is willing to increase its investments, Ang said it would depend on the need of the company. “It depends if I get invited. My business is not programming. I can program all I want but I have to get invited.”

“Right now, I can do as much as I can,” he added.

EDC is currently seeking approval for $150 million in loans from the IFC and other bilateral sources, the proceeds of which will be used to partially finance the company’s medium-term capital expenditure plan.

“EDC is currently the largest company utilizing geothermal sources of energy in the Philippines. Our support will provide critical additional resources of an appropriate tenor to help develop projects in the geothermal energy sector and, thereby, help the country move toward greater reliance on private sources of growth in the renewable infrastructure sector,” IFC documents stated.

IFC will provide EDC a fixed-rate, long-term local currency financing. This, it said, will be third time the World Bank unit will be doing so for EDC.

IFC invested in EDC some $49 million during its initial public offering (IPO) in 2006. In 2008, IFC extended to EDC $86 million in long-term commercial loan.”

Source: Business Inquirer