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Philippine EDC with details on $300m bond offering

Philippine EDC with details on $300m bond offering Bacon-Manito geothermal power plant, Philippines (source: First Gen Corp.)
Alexander Richter 20 Jan 2011

Philippine Energy Development Corp. (EDC) concludes international road show in connection with US$300m bond offering, priced at par at a yield of 6.5% and bonds to be listed on the Singapore Exchange.

Philippine based “Energy Development Corp. (EDC) has concluded an international road show in connection with its $300-million bond offering. In a disclosure to the Philippine Stock Exchange, EDC said the 10-year bonds due 2021 were “priced at par at a yield of 6.5%.”, so local news.

The joint lead managers for the transaction are Deutsche Bank and J.P. Morgan. The bonds will be listed on the Singapore Exchange Securities Trading Ltd.

Proceeds of the bond offering will be used to finance capital expenditures, debt servicing requirements, and “general corporate purposes.”

EDC runs the 305-megawatt (MW) Tongonan 1 geothermal power plant and the 192-MW Palinpinon geothermal plant in Leyte, as well as the 150-MW Bacon-Manito (BacMan) geothermal complex in Albay.

The company earlier said it wanted to finish the rehabilitation of BacMan by the second half of the year. The power complex is running at a diminished capacity of 120 MW, and is expected to return to full capacity after rehabilitation.

BacMan is located in Bacon, Sorsogon and Manito, Albay. The 110-MW BacMan I geothermal plant was commissioned in 1993 while the 40-MW BacMan II plants were commissioned in 1998.

EDC has programmed P20.6 billion in capital expenditures from 2010 to 2015 for its geothermal and steam plants as well as resource gathering.

The firm’s net income rose by 446% to P7.58 billion in the nine-month period that ended September 2010 from P1.39 billion in the same period in 2009. Core net income rose by 27% to P6.44 billion from P5.08 billion in the same period the year previous.

Revenues grew by 21% to P19.3 billion during the nine-month period from 2009’s P15.9 billion. Electricity sales alone increased by 71% to P17.5 billion from P10.2 billion.

Shares in EDC closed at P6.08 yesterday, up by 1.7% from its previous close of P5.98 a piece.”

Source: Business World Online