ENERGY Development Corp. (EDC), the country’s largest geothermal power producer, said it has secured a P5 billion loan from three banks to refinance maturing debt.
In a disclosure to the Philippine Stock Exchange (PSE), the Lopez-led power firm said that its wholly owned subsidiary Bac-Man Geothermal Inc. (BGI) completed the execution of separate loan agreements with three banks.
These three are the Bank of the Philippine Islands (BPI), BDO Unibank, Inc., and Security Bank Corporation.
BDO Capital & Investment Corporation acted as structuring advisor and sole bookrunner while BDO Capital & Investment Corporation, BPI Capital Corporation, and SB Capital Corporation acted as joint lead arrangers.
EDC vice-president for finance Erwin O. Avante said that when the company acquired the 150-megawatt Bacon-Manito (BacMan) geothermal complex in Albay for $28 million, it spent for its rehabilitation.
“There were rehabilitation costs incurred since then advanced by EDC,” said Avante.
Avante explained that the P5 billion will be used to reimburse some of these costs back to EDC, and then EDC will then use the money for other capital expenditures (capex) including for Bacman 3.
The Bacman 3 power project is located in Bacon, Sorsogon Province and Manito, Albay. The other Bacman plants are the 120-MW Bacman 1 and 20-MW Bacman 2.
EDC has an outstanding P12-billion bond float, P8.5 billion of which was due last June and the remaining P3.5 billion is due in December 2016.
Francis Giles Puno, EDC director, earlier said the P5-billion loan will have a term of seven years.
In 2011, EDC raised P12 billion from a bond issue to finance its capital expenditures and debt servicing requirements as well as for general corporate purposes.