WB unit buys 5% of PNOC-EDC for $50M

The private sector arm of the World Bank Group on Tuesday said it bought $50 million worth of shares of PNOC-Energy Development Corp. (PNOC-EDC), which is listing on the local stock exchange for the first time. World Bank unit International Finance Corp. will acquire approximately 781 million shares or 15 percent of PNOC-EDC's total offer. PNOC-EDC has been authorized to sell 40 percent of its stake to investors, including foreign investors. The transaction will give IFC ownership of 5 percent of PNOC-EDC. In a statement, IFC said the investment supports the government's goal of privatizing energy sector assets and will improve efficiency and aid expansion in the geothermal energy sector. PNOC-EDC is the world's second largest producer of geothermal energy. "We are very pleased to participate in this transaction. IFC's investment in PNOC-EDC fits our strategy of supporting infrastructure investments and promoting renewable energy development, a priority area for the government of the Philippines," IFC Country Manager for the Philippines and Thailand Vipul Bhagat said. The amount raised through the primary offering will be used to rehabilitate, expand, and acquire new equipment for developing geothermal power a clean, renewable and cost competitive energy source. IFC said the additional investments by PNOC-EDC through the IPO would reduce the cost of power in the Philippines, and make electricity more affordable. "We look at IFC's investment in our offering as an affirmation of our strategy to attract private sector participation and explore new sources of renewable energy," PNOC-EDC President and CEO Paul Aquino, said. - GMANews.TV