Energy Development Corp., the country’s biggest producer of geothermal energy, said it signed an $80-million new term loan facility due in June 2018.
“The new facility shall be used for capital expenditure needs and general corporate purposes of the company,” EDC said in a disclosure to the Philippine Stock Exchange.
EDC tapped Mizuho Corporate Bank Ltd. and Sumitomo Mitsui Banking Corp. as lead arrangers and bookrunners of the transaction, with Mizuho Corporate Bank Ltd. Hong Kong as the facility agent.
EDC chief finance officer Nestor Vasay earlier said the $80-million loan would complete the funding requirement of its 87-megawatt Burgos wind project in Ilocos Norte costing an estimated $300 million.
“In EDC’s case, this club loan will complete our fully funded business plan for our Burgos wind project and will trigger a notice to proceed to commence the project,” Vasay said. The project is expected to begin operation by 2014.
The company earlier selected Vestas Wind Systems of Denmark, the world’s largest wind turbine manufacturer, as equipment supplier for the project. The wind farm covers approximately 600 hectares across barangays Saoit, Poblacion and Nagsurot.
Vestas will supply and put up 29 large scale V90 3-MW wind turbines for the project. Each wind turbine will deliver around 3 MW per hour.
The wind project also involves the construction a 115-kV transmission line connecting the wind farm from the Burgos substation to the Laoag substation of National Grid Corporation of the Philippines, and the expansion of the switchyard/substations.
The Burgos wind project is expected to generate approximately 233 gigawatthours annually and power over a million households.
EDC is the world’s largest integrated geothermal energy producer and one of the leading renewable energy companies in the Philippines with a portfolio of 1,130 MW of geothermal and 132 MW of hydroelectric plants.