MANILA – The Securities and Exchange Commission (SEC) approved the plan of geothermal producer Energy Development Corp. (EDC) to sell up to P12 billion worth of fixed-rate bonds, proceeds of which will go to pay off foreign-denominated loans.

The bonds, which will be offered from November 18 to November 26, are comprised of 5 1/2 fixed-rate bonds, and 7 year bonds. Interest rates for the 5-year bonds will be in the range of 8.2058 percent to 8.9558 percent, while the 7-year bonds yield 9.0673 percent to 9.8173 percent.

Lopez-led EDC plans to raise about P11.88 billion, if it exercises its over-allotment option. It said the funds will be used to partially refinance and redenominated the Miyazawa II loan worth ¥22 billion or about P11 billion maturing in June next year.

The Japan government set up the $30-billion Miyazawa Fund—named after the then Japanese finance minister Kiichi Miyazawa—in 1999 as a financial and package to help Asian countries reeling from the Asian financial crisis.

Issue manager and sole bookrunner of the issue is BDO Capital and Investment Corp. Joint lead underwriters are BDO Capital, RCBC Capital Corp., BPI Capital Corp. and SB Capital Corp.

EDC earlier expressed optimism that investors will respond positively to its upcoming bond issuance after securing an “Aaa” rating from the Philippine Rating Services Corp. (PhilRatings).

The company earlier issued P9-billion fixed-rate corporate notes which elicited strong investor takeup.

EDC remains the country’s leading producer of geothermal energy accounting for 62 percent or 1,199 megawatts (MW) of the 1,980-MW total installed capacity.

In another development, Gotianun-led property developer Filinvest Land also obtained the approval of the SEC to sell up to P5 billion worth of fixed-rate bonds, which will be used to fund the company’s budget until 2010.

Filinvest Land expects to raise net proceeds of P4.94 billion for its 3-year and 5-year bonds.

In particular, Filinvest will spend P700 million this quarter until the first quarter of 2010 for landbanking activities for future projects in Metro Manila and in Cebu City.

The firm will spend more than P4 billion next year for medium-rise building developments and also for mass housing projects targeting the low- and middle-income segments.

The 3-year bonds will yield 7 percent to 8.5 percent per annum, while the 5-year bonds will carry an interest rate of 8 percent to 9.5 percent. The company earlier said it will offer the bonds this month.

Joint lead managers and underwriters for the bonds are BDO Capital & Investment Corp., BPI Capital Corp. and First Metro Investment Corp., with China Banking Corp. and RCBC Capital Corp. as co-lead underwriters.

Filinvest Land earlier secured the highest rating from PhilRatings for the bond issuance. The top rating or “PRS Aaa” is typically given to obligations seen to have minimal risk of default.

abs-cbnNEWS.com is the online news department of ABS-CBN Interactive Inc., a subsidiary of ABS-CBN Broadcasting Corp. ABS-CBN and EDC are both part of the Lopez Group of Companies.