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EDC to borrow P3.5 billion from UnionBank to refinance existing loans

LOPEZ-LED Energy Development Corp. (EDC) is borrowing P3.5 billion from Union Bank of the Philippines (Union Bank) to refinance existing loans.

In a disclosure to the stock exchange on Thursday, EDC said it executed a fixed 15-year amortizing loan with the bank on April 5.

When sought for further details, EDC Vice President for Corporate Finance Erwin Avante said the company’s existing loans that will be refinanced by the UnionBank loan are “roughly the same amount. There shouldn’t be any new money involved”.

In a separate disclosure, EDC told the exchange it accepted on April 5 tender offers for the $300- million, 6.5-percent notes due in 2021.

“On April 5 EDC accepted valid tender offers of notes from noteholders representing an aggregate of $65.920 Million in nominal amount of the notes at a purchase price of $1,110 per $1,000 principal amount of the notes,” EDC said in the filing.

EDC will announce next week the principal amount of any additional notes accepted for purchase.

The company posted a net income of P9.72 billion last year, from P7.86 billion a year ago on the back of stronger revenues recorded at P34.2 billion in 2016.

Core profit reached P9.16 billion in 2016 as against P8.8 billion in 2015.

EDC attributed its improved performance to the robust operation of its geothermal, wind and hydro businesses despite low market-spot prices.

EDC is the largest producer of geothermal energy and one of the leading renewable-energy companies in the country.

 

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