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Financial Management Strategies

We optimized capital allocation of all funds for  operational and capital expenses while maintaining  stable target selling prices and annual revenues. In  ensuring the financial and non-financial returns of our  investors, we enforced sound financial management  strategies through fully-funded business plans,  secured grants and concessional financings, and  the completion of timely Debt Service and Dividend  payouts. We also increased revenue by building a  positive brand image and reputation, and improving  our contract portfolio.  
 
Risks are inevitable, and for our financial operations,  these include a mismatch in contracting cycles on  some of our plants, climate change impacts, and  the volatility of interest and foreign exchange  rates. In contracting, we bridged capacity through  replacement in power contracting and long-term  projects, with higher rates based on the market  outlook. In addition, we explored hedging activities  and regular monitoring of Interest Rate (IR) and  FOREX risks, along with other economic indicators.  We ensured no loan defaults, regular attendance  to bank economic briefings, and constant  communication with banks.  
 
Sourcing funds during the pandemic was still  challenging. We managed this by nurturing banking  and investor relationships through transparency  and good communication. We also forged  collaborations with external partners and with the  right customers. These include those who lean more  on environmental, social, and governance (ESG)  investments. This allowed us to boost our financial  performance while engaging with partners with  whom we share the same goals.  
 
EDC also explored new sources of financing that  support renewable energy investments. We secured  fixed-rate, medium- to long-term debt, and equity  financing for our growth projects, such as the  Palayan Bayan Binary Project and the Mindanao 3,  other capital expenditure projects, and refinancing  for our bullet maturities. We also explored business  expansion opportunities with the Retail Competition  and Open Access (RCOA) and Green Energy  Option Program (GEOP), widening the market base  for contracting and other ancillary services.  
 
We engaged with our suppliers to improve our  technology and processes while decreasing the  input costs. We also leveraged through digital  financial transformation, such as shifting some of our  operations to electronic or automated processes.  
 
In addition, we took further steps in future-proofing  EDC, which include insuring for Business Interruption  and connecting with our shareholders better.