By James A. Loyola
Energy Development Corporation (EDC), the renewable energy unit of the Lopez group, continues to expand its operations as its geothermal portfolio is expected to be fully contracted by this month.
Accounting for 60.7 percent of the country’s total installed geothermal capacity, EDC has a combined geothermal capacity of 1,179.3 MW as of end-September 2019.
EDC’s total output will be supported by its Bacman and Nasulo plants which have been nominated by FG Hydro to supply the contract in its winning bid during the conclusion of Meralco’s competitive selection process for its power supply requirement in September 2019.
“EDC is currently pursuing the expansion of existing geothermal power plants as it continues to look out for other potential geothermal projects locally and internationally,” said Philippine Rating Services Corporation (PhilRatings).
Because of this and other factors, PhilRatings maintained the highest Issue Credit Rating of PRS Aaa for EDC’s ₱7.0 billion outstanding bonds, composed of the ₱3.0 billion Retail Bonds due on May 3, 2020 and the ₱4.0 billion Retail Bonds due on May 3, 2023.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
The rating was also assigned a Stable Outlook. This means that the assigned issue credit rating is likely to remain unchanged in the next 12 months.
The assigned issue credit rating and Outlook reflect EDC’s leading position as a renewable energy company, both domestically and globally, and its strong parent company support and highly-experienced management team.
PhilRatings also cited EDC’s adequate cash flows to cover debt payments; conservative capital structure, with a well-managed foreign currency exposure; and a supportive economic and regulatory environment.
EDC is the largest vertically integrated geothermal developer in the world, operating from the steamfield up to the power plant. It is likewise a leading renewable energy (RE) company, with business interests in geothermal, wind, hydroelectric and solar energy.