EDC PR 2016 (FS section)

Financial Statement
to the sum of the principal amount of the loan to be prepaid, redeployment cost and prepayment
premium.
Issuance of FXCN and Prepayment of FRCN
On July 3, 2009, EDC received ₱7,500.0 million proceeds from the issuance of FRCN split into
two tranches, Series One and Series Two. Series one amounting to ₱2,644.0 million will mature
after 5 years and Series two amounting to ₱4,856.0 million will mature after 7 years with a coupon
rate of 8.3729% and 9.4042%, respectively. On September 3, 2009, EDC received
₱1,500.0 million proceeds from the additional issuance of FRCN, a 5-year series paying a coupon
of 8.4321% (Series Three).
On April 4, 2012, EDC signed a 10-year FXCN facility agreement amounting to ₱7,000.0 million,
which is divided into two tranches. The proceeds from the first tranche amounting to
₱3,000.0 million were used by the Company to prepay in full its FRCN Series One and Series
Three for ₱1,774.3 million and ₱1,007.1 million, respectively. Subsequently, on May 3, 2012, the
FRCN Series Two was also prepaid in full for ₱4,211.1 million using the proceeds from the
second tranche of FXCN amounting to ₱4,000.0 million. The FXCN tranches 1 and 2 bear
coupon rates of 6.6173% and 6.6108% per annum, respectively.
Debt issuance costs amounting to ₱100.2 million was capitalized as part of the new FXCN.
Amended FXCN
On April 30, 2015, EDC and the Noteholders amended the FXCN loan agreement to reduce the
interest rate to 5.25% for both Tranche 1 and Trance 2 as well as to effect other amendments in
order to align the same with the other loan covenants of EDC.
Transaction costs related to the amended FXCN amounting to ₱64.7 million were capitalized to
the carrying amount of the FXCN loan.
Refinanced Syndicated Term Loan
On June 17, 2011, the Parent Company entered into a credit agreement for the US$175.0 million
(₱7,630.0 million) transferable syndicated term loan facility with ANZ, The Bank of
Tokyo-Mitsubishi UFJ, Ltd., Chinatrust (Philippines) Commercial Banking Corporation, ING
Bank N.V., Manila Branch, Maybank Group, Mizuho Corporate Bank, Ltd. and Standard
Chartered Bank as Mandated Lead Arrangers and Bookrunners. The purpose of the new loan is to
refinance the old US$175.0 million syndicated term loan availed on June 30, 2010 with scheduled
maturity of June 30, 2013. The new loan carries an interest of LIBOR plus a margin of 175 basis
points and has installment repayment scheme to commence on June 27, 2013 until June 27, 2017.
2013 Peso Fixed-Rate Bonds
On May 3, 2013, EDC issued fixed-rate peso bonds with an aggregate principal amount of
₱7.0 billion. The bonds, which have been listed on the PDEx, are comprised of ₱3.0 billion
seven-year bonds at 4.1583% and ₱4.0 billion 10-year bonds at 4.7312% due on May 3, 2020 and
May 3, 2023, respectively. Interest is payable semi-annually starting November 3, 2013.
Transaction costs incurred in connection with the issuance of the seven-year bonds and 10-year
bonds amounted to ₱39.1 million and ₱52.1 million, respectively.
The net proceeds are used by the Parent Company to partially fund the 87-MW Burgos wind
project located in the municipality of Burgos, Ilocos Norte with estimated project cost
US$300.0 million. Any difference between the total construction costs and the net proceeds of the
bonds were sourced from internally generated cash, existing credit lines, and other potential
borrowings.
239