SEC approves EDC’s public offering of up to ₱15 billion of fixed-rate ASEAN green bonds

The Securities and Exchange Commission (SEC) has approved Energy Development Corporation’s (EDC) public offering of up to ₱15 billion of fixed-rate ASEAN green bonds.

The EDC will use proceeds to fund geothermal growth and maintenance capital expenditure (CapEx) projects, including a portion of the capital expenditures for its Palayan Bayan Binary Project, Mindanao III Binary Project, and other projects related to natural catastrophe resiliency, power plant equipment upgrades, and spare parts replacements.

In its meeting on June 8, the SEC en banc resolved to render the registration statement of EDC covering securities under the EDC ASEAN Green Bond Program effective which may be issued in one or more tranches within three years, subject to certain remaining requirements.

ASEAN Green Bonds refer to bonds and “sukuk” which comply with the ASEAN Green Bonds Standards, where proceeds are exclusively applied to finance or refinance new and/or existing eligible green projects, in part or in full.

Eligible green projects include those for renewable energy, energy efficiency, pollution prevention and control, environmentally sustainable management of living natural resources and land use, clean transportation, climate change adaptation, and green buildings.

For its first tranche, EDC will offer up to ₱3 billion of three-year bonds due in 2024 and five-year bonds due in 2026, with an oversubscription option of up to ₱2 billion. The bonds will be offered at face value and will be listed and traded on the Philippine Dealing & Exchange Corp.

SOURCE: PNA