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.



Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Previous Article

Cebu Pacific adds four new routes from Clark, Cebu airport centers

Next Article

Election spending helped Puregold hike income by 10% to P5.3 billion in 2016

Related Posts

Read more

Meralco Biz empowers businesses to leap with power and reach new heights in the Year of the Water Rabbit

It’s no secret that many businesses in the last couple of years have scaled back on operations because of the challenges brought about by the pandemic. But as everyone welcomes the Year of the Water Rabbit, with its promise of prosperity and longevity, many are poised to hop back on track and hopefully reach new heights. Meralco Biz has geared up to enable this resurgence with its suite of services and solutions to increase operational efficiency and optimize resources – helping them to achieve great results in this new chapter.