LOPEZ-LED Energy Development Corp. (EDC) said the net proceeds of its first tranche P3-billion fixed rate ASEAN green bonds will partly fund its 29-megawatt (MW) Palayan Bayan Binary Project (PBBP).

According to an offer supplement filed with the corporate regulator, the first tranche, which will consist of three-year bonds due in 2024 and five-year bonds due 2026, will have an oversubscription option of up to P2 billion.

“Proceeds of the Bonds will be used primarily by the Company to finance or refinance new and existing renewable energy projects that are considered ‘Eligible Green Projects’ under the EDC Green Bond Framework,” EDC said, citing the PBBP as an eligible green project in its offer supplement filed with the Securities and Exchange Commission (SEC) on March 15.

“The net proceeds of the offer amounting to P2.95 billion, assuming an Issue Amount of P3 million shall be used primarily for the partial reimbursement of equity contributed by EDC into BGI (Bacman Geothermal Inc.) in Q4 2020; and Q1 2021 for the funding of the capital expenditure requirements of PBBP,” EDC added.

If the oversubscription option of P2 billion is fully exercised, the firm stands to book additional net proceeds of P1.98 billion. Of the amount, some P637.29 million may be used for a fresh equity contribution for the PBBP’s budget for the first quarter next year, EDC said.

The PBBP is operated by EDC’s subsidiary BGI, and the geothermal plant produces power from using the residual brine from the existing steam field of the Bac-Man facilities.

BDO Capital & Investment Corp. and BPI Capital Corp. are appointed as the joint lead underwriters, and SB Capital Investment Corp. is assigned as the co-lead underwriter.

Earlier this month, EDC unveiled its first green bond framework in line with its pursuit of renewable energy initiatives. — Angelica Y. Yang