SEC approves EDC's P15-B ASEAN Green Bond

Published June 8, 2021, 4:38 PM

by James A. Loyola

The Securities and Exchange Commission (SEC) has approved Energy Development Corporation’s plan to offer up to P15 billion worth of fixed-rate ASEAN green bonds.

In its meeting on June 8, the Commission En Banc resolved to render effective the registration statement of EDC covering securities under the EDC ASEAN Green Bond Program which may be issued in one or more tranches within three years, subject to certain remaining requirements.

ASEAN Green Bonds refer to bonds which comply with the ASEAN Green Bonds Standards, where the proceeds will be exclusively applied to finance or refinance, in part or in full, new and/or existing eligible green projects.

Eligible green projects include those for renewable energy, energy efficiency, pollution prevention and control, environmentally sustainable management of living natural resources and land use, clean transportation, climate change adaptation, and green buildings.

For the first tranche, EDC will offer up to P3 billion of its three-year bonds due in 2024 and five-year bonds due in 2026, with an oversubscription option of up to P2 billion.

The company expects to net up to P4.93 billion from the offer, assuming the oversubscription option is fully exercised.

Proceeds will be used to fund geothermal growth and maintenance capital expenditure projects, including a portion of the capex for its Palayan Bayan Binary Project, Mindanao III Binary Project, and other geothermal capex for natural catastrophe resiliency, powerplant equipment upgrades, spare parts replacements and other capex projects.

The bonds will be offered at face value, and will be listed and traded on the Philippine Dealing & Exchange Corp.

EDC tapped BDO Capital & Investment Corporation and BPI Capital Corporation as joint issue managers, joint lead underwriters, and joint bookrunners for the offering. SB Capital Investment Corporation will serve as co-lead underwriter.