ENERGY Development Corp. (EDC), the country’s largest geothermal power producer, has secured a bridge loan facility worth $90 million, or approximately P3.9 billion, from foreign banks to provide financing for a major wind project that it is building in Ilocos Norte.
In a disclosure to the Philippine Stock Exchange on Friday, the Lopez-led company said it has signed a bridge financing facility with Australia and New Zealand Banking Group Ltd. and Mizuho Bank Ltd. acting as mandated lead arrangers and bookrunners for the transaction.
EDC told the local bourse that proceeds of the loan facility will be used to complete the bridge financing for the 63-megawatt Phase 2 of Burgos Wind Project in Ilocos Norte.
Once completed, the Burgos Wind Project will be the largest operating wind farm in the Philippines, generating about 233 gWh of electricity a year, enough to power more than a million households and augment the Luzon grid’s dependable capacity, which needs an additional 4,200 MW in the next 10 years.
The project is being built in two phases: 87 MW (Phase 1) is expected to be completed by the fourth quarter of 2014 and 63 MW (Phase 2) is targeted for completion by the first quarter of 2015.
“With the financing in place, EDC is on track to complete construction of the 87 MW Phase 1 by the fourth quarter of 2014 and the 63 MW Phase 2 by the first quarter of 2015,” EDC further said.
Two weeks ago, EDC borrowed from two local banks a combined amount of P2.7 billion to partially fund phase two of the project.
The company signed separate two-year bridge facilities totaling P2.7 billion with Philippine National Bank and Security Bank Corp. for the project.
Overall, the project will reinforce EDC’s position as the country’s premier renewable energy company, adding 150 MW of wind capacity to its existing 1,150 MW geothermal and 132 MW hydropower assets.