EDC lists P10-B ASEAN green bonds

EDC president & COO Jerome Cainglet (5th from left) leads the ceremony with (from left) Ryan Martin Tapia, China Bank Capital president; Virgilio Chua, SB Capital president & CEO; Ma. Theresa Ravalo, PDTC president & CEO; Erwin Avante, EDC SVP & CFO; Roland Gerard Veloso Jr., BPI Capital president; Barbara May Billano, BDO Capital FVP; and Antonino Nakpil, PDEx president & CEOEnergy Development Corporation (EDC) on May 27, 2024 listed P10-billion fixed rate ASEAN green bonds, the second tranche of its P15-billion ASEAN green bonds shelf registration, in the Philippine Dealing & Exchange Corporation (PDEx). The P5-billion first tranche bonds were issued and listed on June 25, 2021.

EDC president and COO Jerome Cainglet led the ceremony attended by representatives from the Securities and Exchange Commission’s (SEC) markets and securities regulation department including director Oliver Leonardo, and from the PDEx led by president and CEO Antonino Nakpil, as well as by senior management and representatives from EDC’s transaction partners, agents and counsels.

The issuance was more than 7x subscribed over its P6 billion base issue size, allowing EDC to exercise the oversubscription option and raise an additional P4 billion. The second tranche bonds were priced at the lowest end of the credit spread range, fetching rates of 6.7478%, 6.8873% and 7.0626% for the three-year, five-year and seven-year series, respectively.

“As we are all feeling the past few weeks, the Philippines is experiencing dangerously high heat indices. This has led to a surge in electricity demand, particularly for cooling, which has significantly reduced our reserve levels and has put upward pressure on electricity prices. We look forward to adding renewable energy capacity to address these and, through the green bonds, present the public with the opportunity to participate in financing clean and renewable energy projects in line with our company’s mission of forging collaborative pathways for a decarbonized and regenerative future,” said Cainglet.

The SEC issued the permit to sell for the second tranche bonds on May 10, 2024. Both the existing first tranche bonds and the second tranche bonds have been rated PRS Aaa, with a stable outlook, by the Philippine Rating Services Corporation in its March 19 credit ratings report.