EDC PR 2016 (FS section)

The Parent Company capitalized in its consolidated financial statements the actual borrowing costs
incurred on the bonds amounting to nil and ₱263.0 million in 2015 and 2014, respectively.
US$80 Million Term Loan
On March 21, 2013, the Parent Company entered into a credit agreement with certain banks to
avail of a term loan facility of up to US$80 million with availability period of 12 months from the
date of the agreement.
On December 6, 2013, the Parent Company availed of the full amount of the term loan with
maturity date of June 21, 2018. The proceeds are intended to be used by the Parent Company for
business expansion, capital expenditures, debt servicing and for general corporate purposes. The
term loan carries an interest rate of 1.8% margin plus LIBOR. Debt issuance costs related to the
term loan amounted to US$1.9 million (₱78.2 million), including front-end fees and commitment
fee. The repayment of the term loan shall be made based on the following schedule: 4% and 5%
of the principal amount on the 15th and 39th month from the date of the credit agreement,
respectively; and 91% of the principal amount on maturity date.
Bridge Loans
On June 16, 2014, the Parent Company signed two-year loan facilities with an aggregate principal
amount of ₱2.7 billion with Philippine National Bank (PNB) and Security Bank Corporation
(SBC). Of the total amount, ₱1.3 billion will be provided by PNB, while ₱1.4 billion will be
provided by SBC.
On June 27, 2014, the Parent Company secured another bridge financing facility from ANZ and
Mizuho Bank, Ltd. amounting to US$90 million (₱3.9 billion).
Part of the proceeds from the $315.0 million financing agreement for the construction of the
150-MW Burgos Wind Project (BWP) in Ilocos Norte was used to prepay the two bridge loan
facilities in 2014.
EBWPC Loan
On October 17, 2014, EDC has signed a secured US$315.0 million loan for Burgos Wind Project
(Commercial Debt Facility US$37.5 million, ECA Debt Facility US$150 million, Commercial
Debt Facility ₱5.6 billion). This is a financing facility for the construction of the 150-MW Burgos
Wind Project (BWP) in Ilocos Norte. The facility, which consists of US dollar and Philippine
peso tranches, will mature in 15 years. Portion of the proceeds received from the financing facility
was used to settle the outstanding bridge loans in October 2014. Total borrowing costs amounted
to ₱83.7 million in 2014.
Under the agreement of the EBWPC’s Project Financing, EBWPC’s debt service is guaranteed by
the Parent Company.
In the last quarter of 2014, EBWPC entered into four (4) interest rate swaps (IRS) with aggregate
notional amount of US$150 million. This is to partially hedge the interest rate risks on its ECA
and USD Commercial Debt Facility (Hedged Loan) that is benchmarked against six (6) months
US LIBOR (see Note 31).
On June 15, 2015, EBWPC has fully drawn the US$315 million financing agreement in ECA Debt
Facility, USD Commercial Debt Facility, Peso Commercial Debt Facility with various banks.
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I Energy Development Corporation Performance Report 2016