The Lopez Group’s Energy Development Corporation (EDC) is planning to raise up to P10 billion from a planned ASEAN Green Bond issuance to fund its expansion plans.
Philippine Rating Services Corporation (PhilRatings) said it has assigned the highest Issue Credit Rating of PRS Aaa, with a Stable Outlook, to EDC’s proposed ASEAN Green Bond issuance of P6 billion, with an oversubscription option of up to P4 billion.
PhilRatings has likewise maintained the Issue Credit Rating of PRS Aaa, with a Stable Outlook, for EDC’s outstanding P5 billion Fixed-Rate ASEAN Green Bonds issued in June 2021.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk and the obligor’s capacity to meet its financial commitment on the obligation is extremely strong. A Stable Outlook means the rating is likely to remain unchanged in the next 12 months.
PhilRatings said the assigned ratings and the corresponding outlook take into account EDC's leading position as a pure renewable energy (RE) company and its strong parent company First Gen Corporation's support, and highly experienced management.
Also considered was EDC’s strong operating cash flow and sufficient liquidity, conservative capital structure, and the government's supportive policies in the renewable energy sector.
EDC is the Philippines' largest pure RE company, with a total installed capacity of 1,463 MW from geothermal, wind, hydroelectric, and solar power sources. Its installed capacity constitutes roughly one-fifth of the country's installed capacity from renewable sources.
Geothermal power plants comprise 80 percent of EDC's portfolio. The Company has a total installed capacity of 1,169 MW from geothermal, accounting for 60 percent of the country's installed geothermal capacity.
EDC has several geothermal projects lined up in the next five years, which include a combination of expansion of existing geothermal plants and greenfield project developments.
It also intends to diversify its power generation sources to include offshore wind and energy storage systems in the coming years.