EDC to tap $80M club loan for wind farm project

Geothermal energy firm Energy Development Corporation (EDC) will tap an $80-million club loan from a group of banks to help raise the $300 million it requires for the construction of its wind farm project in Burgos, Ilocos Norte, the company said in a disclosure to the Philippine Stock Exchange Thursday. “A club loan is being extended by a group of banks to EDC,” said EDC investor relations manager and company information officer Erudito S. Recio, who added that this means there is already an “agreement in principle” among the banks before they approached EDC. Chief financial officer Nestor Vasay earlier said that foreign banks are extending the loan to the company. EDC earlier signed a deal with Danish wind turbine manufacturer Vestas to supply it with 29 3.0 V90-megawatt wind turbines. EDC, a subsidiary of Lopez-controlled First Gen Corporation, said it plans to commission the wind farm project in 2014. The 87-megawatt Burgos Wind Project is expected to generate 233 GigaWatt-hours (GWh) a year and supply power to over one million households. The company plans to issue P7 billion worth of seven-year and ten-year fixed rate bonds to local investors. Philippine Rating Services Corp. (PhilRatings) earlier assigned its highest rating of PRS Aaa for the planned bond sale. EDC has an outstanding P12-billion bond issuance, with P8.5 billion due in June 2015 and P3.5 billion in December 2016. — BM, GMA News