Green Core Geothermal Inc, a wholly owned subsidiary of Energy Development Corp (EDC), has obtained loans from various banks amounting to P8.5 billion, the EDC said in a disclosure to the Philippine Stock Exchange on Monday.
It said separate loan agreements have been completed with the banks, which included Asia United Bank Corporation, Bank of the Philippine Islands, BDO Unibank Inc., Development Bank of the Philippines, Land Bank of the Philippines, Rizal Commercial Banking Corp., Robinsons Bank Corp. and Union Bank of the Philippines.
BDO Capital & Investment Corp. acted as sole arranger for the loan, the company said. The loan will be used to repay EDC’s bond maturing this June.
The EDC Board of Directors also approved the company’s two-year Share Buy Back Program, which “is part of the continuing commitment to utilize some of its cash, from time to time, for the benefit of its shareholders/ employees,” EDC said in a separate disclosure to the PSE.
Under the program, the management is authorized to buy from the market the Corporation’s shares up to an aggregate value of P4 billion worth of the company’s common shares.
According to EDC, the program will be executed through the open market by means of the trading facilities of the Philippine Stock Exchange and implemented by the SVP/Treasurer/CFO (chief finance officer).
At today’s price of P8.86 per share, the P4 billion is equivalent to approximately 2.4 percent of the company’s total outstanding common shares.
The period will commence on March 15, 2015 and conclude on March 14, 2017.
EDC, a pioneer in the geothermal energy industry, is involved in exploration and production of water-based steam power to generate electricity for commercial use.
The firm has more than 1,400 megawatts (MW) under its green power portfolio of diversified hydropower and wind power projects.