Energy Development Corporation (EDC) on March 5 launched its maiden Green Bond Framework to celebrate its 45th anniversary.
“We’re going full steam ahead to expand our geothermal portfolio with two projects this year, our 45th year of operation. Our 24/7 clean geothermal energy is one of our country’s strengths that will help the transition to a low-carbon economy,” said Richard Tantoco, EDC president and COO.
As previously disclosed, the board of directors of EDC had approved the undertaking of a Bond Shelf Registration of up to P15 billion, and the offer and issuance of an initial tranche of up to P3 billion with an oversubscription option of up to P2 billion fixed-rate bonds, subject to the approval of the Securities and Exchange Commission (SEC), to be listed on the Philippine Dealing & Exchange Corporation.
EDC intends to also apply with the SEC for the certification of the bonds under the ASEAN Green Bonds Standards adopted in the Philippines.
The bond issuance is intended for the financing or refinancing of new and existing renewable energy projects that are considered Eligible Green Projects under EDC’s Green Bond Framework. These projects will provide cleaner, reliable power to businesses, institutions and other electricity consumers.
The Green Bond Framework is drafted in accordance with the four core components of the International Capital Market Association 2018 Green Bond Principles. It provides guidelines as to the Eligible Green Projects that can be financed through Green Bonds, the procedures for the selection and evaluation of the projects, the management of the proceeds of the Green Bonds, and subsequent reporting.
Sustainalytics has reviewed and issued a Second-Party Opinion on EDC’s Green Bond Framework. Sustainalytics is a leading independent Environmental, Social, and Governance and corporate governance research, ratings, and analytics firm that supports investors around the world with the development and implementation of responsible investment strategies. It is the largest and most experienced external reviewer of Green Bonds as recently recognized by the Climate Bonds Initiative in its Green Bond Pioneer Awards.
Sustainalytics has noted that EDC’s Green Bond Framework is credible and impactful, highlights the key aspects of the Green Bond Framework and confirms the alignment of the framework with the Green Bond Principles and EDC’s sustainability strategy. It also shows the efforts of EDC and positive sustainability aspects of the bonds that will be issued under the framework. (Story/Photos by: Frances Ariola)