LOPEZ-LED Energy Development Corp. (EDC) is unveiling its first green bond framework on Friday as part of its pursuit of renewable energy initiatives.
In a press release, EDC said that its green bond framework was drafted in line with the International Capital Market Association’s (ICMA) 2018 green bond principles, which recommend transparency, disclosure and promote integrity in developing the green bond market.
The launch of the framework comes as the company celebrates its 45th anniversary.
“It provides guidelines as to the eligible green projects that can be financed through green bonds, the procedures for the selection and evaluation of the projects, the management of the proceeds of the Green Bonds, and subsequent reporting,” EDC said.
Independent research firm Sustainalytics said that EDC’s framework was “credible and impactful.”
“Sustainalytics has noted that EDC’s Green Bond Framework is credible and impactful, highlights the key aspects of the Green Bond Framework, and confirms the alignment of the framework to the Green Bond Principles and EDC’s sustainability strategy. It also shows the efforts of EDC and positive sustainability aspects of the bonds that will be issued under the Framework,” EDC said, citing the analytics firm’s second-party opinion.
On its website, Sustainalytics said that it was a global leader in environmental, social, and governance, and corporate governance research and ratings.
The development comes around a month after the EDC said that it planned to issue up to P15 billion of green bonds, with an initial tranche of around P3 billion and an oversubscription option of up to P2 billion of fixed-rate bonds.
“(The bonds are) subject to the approval of the Securities and Exchange Commission (SEC), to be listed on the Philippine Dealing & Exchange Corporation. EDC intends to also apply with the SEC for the certification of the bonds under the ASEAN Green Bonds Standards adopted in the Philippines,” EDC said in a statement.
The bonds are seen to finance or refinance new and existing renewable energy (RE) projects that are qualified as “Eligible Green Projects under EDC’s Green Bond Framework.” The RE projects would provide clean and reliable power to consumers, business and institutions, the firm said.
EDC said that its push for RE is at the core of the Lopez group’s mission “to forge collaborative pathways for a decarbonized and regenerative future.”
“The livable planet that we want for our future generations is achievable if we strive to do more for our ailing environment and our communities and focus on creating shared value, in addition to shareholder value. Shared Value is at the core of being regenerative,” EDC President and Chief Executive Officer Richard B. Tantoco was quoted as saying.
EDC has a total installed capacity of over 1,480 megawatts (MW), which make up 20% of the country’s installed RE capacity. The firm also has a geothermal portfolio of 1,200 MW, which comprises 62% of the Philippines’ total installed geothermal capacity. — Angelica Y. Yang
