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.