EDC tapping Asean green bonds anew

MANILA, Philippines — Energy Development Corp. (EDC), the pure renewable energy arm of the Lopez-led First Gen Corp., will tap anew ASEAN green bonds in a bid to raise up to P10 billion to fund the company’s expansion plans.

First Gen, in a stock exchange filing, said EDC’s board has approved the public offering and listing of the second tranche of its shelf-registered ASEAN green bond program.

The planned second tranche issuance will consist of up to P10 billion fixed rate bonds, subject to the approval of the Securities and Exchange Commission and the Philippine Dealing and Exchange Corp.

EDC chief finance officer Erwin Avante said proceeds of the ASEAN green bond offering would support the company’s capital expenditures plans for 2024, mainly to cover growth projects, among others.

“We have seven ongoing projects as of the moment. But for this ASEAN green bond, we will still finalize allocation which it will fund,” he said.

EDC raised P5 billion from the first tranche of its ASEAN green bond offering back in 2021.

The maiden green bond offering two years ago marked EDC’s return to the debt capital markets, which was last done in 2013.

ASEAN green bonds are specific purpose bonds where proceeds will be exclusively applied to finance or refinance, in part or in full, new and/or existing eligible green projects, and that comply with the ASEAN Green Bond Standards.

EDC is responsible for putting the Philippines on the map as the world’s third largest geothermal producer and has been providing a reliable supply of clean power to the Luzon and Visayas regions for almost 40 years.

As a renewable energy producer, which accounts for almost 20 percent of the country’s total installed renewable energy capacity, EDC also provides 61 percent of the country’s total installed geothermal power.

The company is committed to advancing sustainability by employing new technologies to reduce its environmental footprint while optimizing operations.

EDC is also developing battery energy storage system (BESS) facilities with a combined capacity of 40 megawatts.

The project involves three standalone BESS developments co-located with EDC’s existing geothermal power plants in Sorsogon, Leyte, and Negros Oriental.

The BESS facilities will be used to store excess power from the company’s geothermal plants and supply this stored energy whenand where it is needed.