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Energy Dev’t Corp. gets $90-million loan from IFC

Energy Development Corp. (EDC) has secured a $90-million loan financing deal with World Bank Group’s private sector arm International Finance Corp. (IFC) to partly fund its capital requirements for the return of services of its Leyte geothermal power plants hit by earthquake in July 2017.

In a regulatory filing submitted by EDC head of investor relations Ryan Velasco on Friday, the geothermal power producer said it has signed a 15-year financing agreement amounting to $90 million on March 22 with IFC.

“The proceeds of the loan will fund a portion of the 2018 capital requirements and other general corporate purposes of EDC’s existing geothermal operations,” the company said.

EDC noted its capital requirements include the balance of work related to the return of service of the geothermal power plants in Leyte that were affected by the July 2017 earthquake.

The loan will also finance the company’s other project initiatives “aimed at increasing the reliability, efficiency and throughput of EDC’s existing geothermal facilities as well as reducing outages and health, safety and environment risks.”

As of December 31, 2017, EDC and its subsidiaries own and operate a diversified portfolio of renewable energy projects in the Philippines with a total installed capacity of 1,472 megawatts, including geothermal, hydro, wind, and solar projects.

EDC said its power generation in 2016 represents approximately 9 percent of the country’s total power generation capacity.

“With this most recent financing on the back of previous financings in 2011, 2008, and even an IPO-enabling IFC investment in 2006, EDC and IFC continue to strengthen our partnership. We share a joint commitment to provide sustainable energy sources for the Philippines and to mitigate carbon emissions.” EDC president and chief operating officer Richard Tantoco said.

“Securing this financing with IFC further confirms that EDC continues to adhere to the high standards of multi-lateral funding organizations in the aspects of financial discipline, good corporate governance, environmental and social stewardship, safety and security, and fair labor practices,” EDC senior vice President and chief financial officer Nestor Vasay said. —Ted Cordero/VDS, GMA News