EDC PR 2016 (FS section)

The long-term debts are presented net of unamortized transaction costs. A rollforward analysis of
unamortized transactions costs follows:
2016 2015
Balance at beginning of year ₱980,251,666 ₱867,879,326
Additions 14,863,236 282,106,270
Amortization (Note 24) (176,362,395) (169,733,930)
Balance at end of year ₱818,752,507 ₱980,251,666
Parent Company Loans
The Parent Company entered into unsecured long-term loan arrangements with domestic and
international financial institutions for its various development projects and working capital
requirements.
US$ 300.0 Million Notes
On January 20, 2011, the Parent Company issued a 10-year US$300.0 million notes
(₱13,350.0 million) at 6.50% interest per annum which will mature in January 2021. The notes
are intended to be used by the Company to support the business expansion plans, finance capital
expenditures, service debt obligations and for general corporate purposes. Such notes were listed
and quoted on the Singapore Exchange Securities Trading Limited (SGX-ST).
Peso Public Bonds
On December 4, 2009, the Company received ₱12.0 billion proceeds from the issuance of fixed
rate Peso public bonds - split into two tranches - ₱8.5 billion, due after five years and six months
and ₱3.5 billion, due after seven years, paying a coupon of 8.6418% and 9.3327%, respectively.
The peso public bonds are also listed on Philippine Dealing and & Exchange Corp. (PDEx).
Effective November 14, 2013, certain covenants of the peso public bonds have been aligned with
the 2013 Peso Fixed-Rate Bonds through consent solicitation exercise held by the Parent
Company. Upon securing the required consents, a Supplemental Indenture embodying the parties’
agreement on the proposed amendments was signed on November 7, 2013 between EDC and
Rizal Commercial Banking Corporation - Trust and Investments Group in its capacity as trustee
for the bondholders.
On December 5, 2016 and June 4, 2015, the Parent Company fully settled the ₱3.5 billion and
₱8.5 billion Peso public bonds, respectively.
IFC
The Parent Company entered into a loan agreement with IFC, a shareholder of the Parent
Company, on November 27, 2008 for US$100.0 million or its Peso equivalent of ₱4.1 billion.
On January 7, 2009, the Parent Company opted to draw the loan in Peso and received the proceeds
amounting to ₱4,048.8 million, net of ₱51.5 million front-end fee. The loan is payable in 24 equal
semi-annual installments after a three-year grace period at an interest rate of 7.4% per annum for
the first five years subject to repricing for another five to 10 years. Under the loan agreement, the
Parent Company is restricted from creating liens and is subject to certain financial covenants.
On May 20, 2011, the Parent Company signed a 15-year US$75.0 million loan facility with the
IFC to fund its medium-term capital expenditures program. The loan was drawn in Peso on
September 30, 2011, amounting to ₱3,262.5 million. The loan is payable in 24 equal semi-annual
installments after a three-year grace period at an interest rate of 6.657% per annum. The loan
includes prepayment option, which allows the Company to prepay all or part of the loan anytime
starting from the date of the loan agreement until maturity. The prepayment amount is equivalent
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I Energy Development Corporation Performance Report 2016