Future-Proofing Nature and Society: ASEAN Green Bonds

In June 2021, amid the ongoing pandemic  and the urgent need for action on the  climate crisis, the Securities and Exchange  Commission (SEC) approved EDC’s PHP  15-billion Association of Southeast Asian  Nations (ASEAN) Green Bonds shelf  registration along with issuing a Permit to Sell  for the initial tranche of PHP 3 billion with a  PHP 2 billion oversubscription.  
Through these Green Bonds, the public  can support and participate in financing  renewable energy projects in the Philippines  spearheaded by EDC. This advances the  Company’s mission of forging collaborative  pathways for a decarbonized and  regenerative future for all.  
Due to the strong demand from investors for  the first tranche bonds, the issuance was more  than 10x oversubscribed, allowing EDC to  exercise the oversubscription option and raise  another PHP 2 billion on top of the base issue  size of PHP 3 billion. With this, EDC raised  a total of PHP 5 billion from the first tranche  issuance and priced these at the lowest end  of the range, with Series A Fixed Rate ASEAN  Green Bonds due 2024 (3-year series) priced  at 2.8565% p.a. and Series B Fixed Rate  ASEAN Green Bonds due 2026 (5-year  series) priced at 3.7305% p.a.  
Further, the Philippine Rating Services  Corporation (PhilRatings) provided the first  tranche of EDC bonds with a “PRS Aaa”  rating, indicating a very strong capacity to  meet its financial commitments and a longterm stable outlook. The PRS Aaa is the highest  Corporate Credit Rating assigned by PRS to  companies.  
The EDC ASEAN Green Bonds are also the  first SEC-registered Peso ASEAN Green Bond  issuance by a Philippine power company.  EDC was awarded in March 2022 with  the Triple A Awards – Best Local Currency  Green Bond (Philippines) by The Asset for the  accomplishment.