EDC plans to conclude financing program for $450m wind project by 2014-end

ENERGY Development (EDC), the Philippines-based firm, is intending to close the debt financing process to fund the construction of its $450m wind power project in Ilocos Norte by the end of 2014.

The company is keen to raise nearly $315m for its 150MW project within the fourth quarter and the total financing structure is planned to have a 70% – 30% debt – equity ratio.

EDC vice-president for corporate finance Erwin Avante was quoted by Business World Online as saying that the company is looking to secure a credit facility of $315m, which will be partly dollar, partly peso.

The Ilocos Norte wind project to be located in Burgos municipality was expanded to 150MW from previous planned capacity of 87MW.

EDC is planning to commence operations at the first part of 87MW segment by the fourth quarter, while the operation at extended 63MW phase is scheduled to start in March 2015.

Avante added: "Initially, we’re getting a bridge financing for the expansion, but the long-term solution which we expect to close this year is the $315 million."

The project developer intends to raise around $150m from bridge financing to fund the development of the 63MW segment of the project.

Avante revealed: "For the 87 MW, we have already secured financing for that. That includes the P7-billion bonds last year, so as far as the 87 MW is concerned, the bridge is funded already.

"So for the expansion, we’re raising the bridge [sic] and it will come from local and foreign institutions."