SEC allows EDC to borrow P7 billion

The Security and Exchange Commission (SEC) has allowed Energy Development Corp. to issue up to P7 billion worth of fixed-rate bonds.   The bonds, which have a maturity of seven and 10 years, will  be offered to domestic qualified investors, EDC said Thursday. BDO Capital & Investment Corp. is the issue manager and sole bookrunner for the issue, with BPI Capital, Development Bank of the Philippines, PCCI, RCBC Capital and SB Capital as joint lead underwriters.   Net proceeds from the offering will be largely used to fund the 87 megawatt Burgos wind project located in Ilocos Norte, the Lopez-led geothermal power producer said. EDC, the country’s largest producer of geothermal power, has an outstanding P12 billion bond issuance, of which P8.5 billion is due in June 2015 and P3.5 billion  in December 2016. The company posted a net income of P10.4 billion last year o nearly 17 times the P615 million recorded in 2011. Revenues rose by  15.6 percent to P28.4 billion mainly due to higher electricity sales complemented by the revenue contri ution from FG Hydro’s ancilliary services.          EDC expects to miss its P160 million in revenues per unit per month given the suspension of operations of the Bacman geothermal power plant units 1 & 2 after a turbine blade was sheared off, causing damage to the unit. — KBK, GMA News