MANILA - Electricity producer Energy Development Corp. (EDC) said yesterday it raised P7.5 billion ($156 million) in a notes issue, more than double its original plan, to refinance maturing debt and fund expansion.

EDC, a unit of the country’s largest privately held power generator First Gen Corp., is planning to bid for geothermal power assets of state-owned National Power Corp. in August and has nearly $300 million in debt maturing next year, officials said.

"We really need to build up our cash pile," Richard B. Tantoco, chief operating officer of EDC, told reporters after the company’s annual meeting.

Officials said the company also plans to raise another P3 billion to P5 billion from a bond offer this year.

"The bonds, we’d like to do that, for so long as the market is open. The cost of funding is very cheap," said Mr. Tantoco.

Yesterday, EDC signed a P7.5-billion notes facility, with maturities of five and seven years, with a consortium of local banks composed of BDO Capital and Investment Corp., PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. It had originally planned to raise P3 billion.

"The warm response from institutional investors underscores the high credit quality of EDC and illustrates the market’s confidence in the company," said Fenina T. Rodriguez, EDC chief financial officer.

The company also expects to draw between $100 million and $120 million in additional loans from the International Finance Corp. (IFC), the World Bank’s private-sector investment arm, possibly this year, EDC President Paul A. Aquino said.

Funds to be raised from the bonds, notes and the IFC loan would likely to reach P17 billion to P18 billion, Mr. Aquino said.

"That amount might be enough but we still have some other projects [to fund]," he said, adding EDC was in talks with other foreign banks and that a share issue was unlikely.

"The way it’s looking right now, it’s a very remote possibility that we’ll sell shares," said Mr. Aquino, citing the higher cost involved.

With an installed capacity of 1,199 megawatts, EDC is the Philippines’ largest geothermal energy producer and has ventured into other renewable energy projects including hydropower and wind.

The Philippines is the world’s second-biggest geothermal producer after the United States.

The company is looking at participating in the Aug. 12 bidding for the 192-megawatt (MW) Palinpinon geothermal plant in Negros Oriental and the 113-MW Tongonan plant in Leyte.

"What is most important for us is the bidding on Aug. 12 because that will dictate future actions," Mr. Aquino said.

EDC shares were unchanged at P3.95 apiece yesterday.