The Energy Development Corporation (EDC) listed PHP5 billion worth of ASEAN Green Bonds in the Philippine Dealing & Exchange Corp. (PDEx) on June 25, 2021. It is the first tranche to be issued out of its PHP15 billion ASEAN Green Bonds shelf registration.
EDC President and COO Richard B. Tantoco led the ceremony, which was attended by representatives from the Securities and Exchange Commission (SEC) led by Chairman Emilio B. Aquino and from PDEx led by its President and CEO Antonino A. Nakpil. Due to the strong demand from investors for the first tranche bonds, the issuance was more than 10x oversubscribed, allowing EDC to exercise the oversubscription option and raise another PHP2 billion on top of the base issue size of PHP3 billion. The first tranche bonds were priced at the lowest end of the range at 2.8565% and 3.7305% for the 3-year and for the 5-year series, respectively.
PDEx President & CEO Antonino A. Nakpil opened the event with his message on EDC as a returning lister of its corporate bonds: “One might say that EDC was born green, has been walking the green walk long before financial and capital markets even began talking the green talk. We congratulate EDC on this issuance and listing and wish it continued greenness and success in all endeavors and hope other issuers follow its lead.”
SEC Chairman Emilio B. Aquino likewise congratulated EDC and said: “The commission commends EDC for its Green Bond Framework and its goal to promote a regenerative environment and society while contributing to a low carbon economy by increasing access to reliable, renewable energy.”
On June 14, 2021, the SEC approved the shelf registration of the EDC ASEAN Green Bonds and issued the Permit to Sell for the first tranche bonds. The first tranche bonds have been rated PRS Aaa, with a stable outlook, by the Philippine Rating Services Corporation and are the first SEC-registered Peso-denominated ASEAN Green Bonds to be issued by a power company in the Philippines.
“We are very much delighted with the overwhelming reception of the bond investors considering our last bond issuance was eight years ago. Through the ASEAN Green Bonds, the public is able to support and participate in financing renewable energy projects, which is aligned with our mission of forging collaborative pathways for a decarbonized and regenerative future,” said Tantoco.
BDO Capital & Investment Corporation and BPI Capital Corporation acted as Joint Issue Managers, Joint Lead Underwriters and Bookrunners, and SB Capital Investment Corporation acted as the Co-Lead Underwriter for the transaction.
EDC is the largest pure renewable energy company in the Philippines, operating 1,186 MW of geothermal, 150 MW of wind, 132 MW of hydroelectric power, and 12 MW of solar power plants— for a total of 1,480 MW of clean and renewable energy. Recognized as a world leader in wet steam field technology, the Company operates in various locations in the Philippines, including in Bicol, Leyte, Negros Island, and Mindanao. EDC, through its subsidiaries, also operates the biggest combined wind and solar farm in the region, located in Burgos, Ilocos Norte, and substantial hydropower assets located in Nueva Ecija.
EDC accounts for 19 percent of the country’s total installed renewable energy capacity, and comprises 62 percent of the country’s total installed geothermal capacity based on the Philippine’s 2020 total installed capacity figures as published in the DOE 2003-2020 Power Statistics report. It has put the Philippines on the map as the 3rd largest geothermal producer in the world.
