EDC raises $300-M from bond listing in Singapore

ABS-CBN News

Posted at Jan 21 2011 05:35 PM | Updated as of Jan 22 2011 01:42 AM

MANILA, Philippines - Geothermal leader Energy Development Corporation (EDC) received on Jan. 21 the proceeds of its US$300 million bond offering it will use to fund expansion.

In a disclosure to the stock exchange, EDC said its 10-year bond due 2021 was listed and quoted in the Singapore Exchange Securities Trading Limited.

It was the first Philippine corporate bond issued in 2011, following the Philippine government's successful global peso note issuance.

EDC priced its bond last January 13 at the tighter end of an earlier price guidance of 6.5%.

Deutsche Bank and J.P. Morgan were the joint lead managers for the transaction.

"The positive reception by investors is a clear indication of their confidence in EDC's ability to reinforce its position in the Philippine renewable energy market and its potential to expand and maintain its position as a leader in the geothermal energy industry. It is also a recognition of our strong track record and continuing efforts to manage risks as EDC executes on its growth platforms," explained Richard B. Tantoco, EDC President and COO.

Tantoco added that the proceeds from the bonds will be used to fund EDC's growth projects, capital expenditures, debt servicing requirements and other general corporate purposes.

EDC is currently focused on domestic growth as well as overseas expansion, particularly in Asia and Latin America.