EDC PR 2016 (FS section)

Financial Statement
As part of the agreement, EBWPC has provided a debt service reserve account for the principal
and interest payment of the loan due in next six (6) months amounting to ₱346.9 million and
₱306.3 million as of December 31, 2016 and 2015, respectively (see Note 11).
₱291.2 million Term Loan
On December 8, 2015, EDC signed a ₱291.2 million loan at 5.75% per annum maturing on
December 17, 2030 with Development Bank of the Philippines. The ₱291.2 million term loan was
used to finance the Burgos Solar Phase I Project.
₱1.5 billion Term Loan
On June 24, 2016, EDC secured a ₱1.5 billion loan at 5.25% per annum maturing on
December 5, 2026 with Union Bank of the Philippines. The ₱1.5 billion term loan was used to
refinance the outstanding ₱3.5 billion fixed rate bonds maturing on December 4, 2016 and fund
other general corporate purposes.
₱1.0 billion Term Loan
On December 1, 2016, EDC secured a ₱1.0 billion loan at 5.57% per annum maturing on
December 05, 2031 with Security Bank Corporation and SB Capital Investment Corporation. The
₱1.0 billion term loan was used to refinance the outstanding ₱3.5 billion fixed rate bonds maturing
on December 4, 2016 and fund other general corporate purposes.
FG Hydro Loan
On May 7, 2010, FG Hydro signed a 10-year ₱5,000.0 million loan agreement with PNB and
Allied Bank, maturing on May 7, 2020. The loan is secured by a real estate and chattel mortgages
on all present and future mortgageable assets of FG Hydro. The loan carries an interest rate of
9.025% subject to repricing after five years. Loan repayment is semi-annual based on increasing
percentages yearly with the first payment made on November 8, 2010. The loan proceeds were
used to finance the full payment of the Deferred Payment Facility and the PRUP, and fund general
corporate and working capital requirements of FG Hydro.
On November 7, 2012, FG Hydro’s outstanding loan amounting to ₱4,300.0 million was
restructured by way of an amendment to the loan agreement. The amended agreement provided
for a change in the determination of the applicable interest rates and extended the maturity date of
the loan by two years with the last repayment to be made on November 7, 2022. FG Hydro has
the option to select its new applicable interest rate between a fixed or a floating interest rate.
FG Hydro opted to avail of the loan at the floating rate which is the higher of the 6-month
PDST-F rate plus a margin of 1.50% per annum or the BSP overnight rate plus a margin of 1% per
annum as determined on the interest rate setting date. On May 7, 2015, both parties agreed to
replace the six-month PDST-F rate with the six-month PDST-R2 rate as the floating benchmark
rate going forward, while the floor rate for a floating loan was pegged at the BSP overnight rate.
FG Hydro still has a one-time option to convert to a fixed interest rate for the remaining life of the
loan at least five days before any interest setting date. The principal and the interest on the loan
are payable on a semi-annual basis.
On February 29, 2016, the loan agreement was amended to release from the loan security all
present and future chattel and non-critical real assets as specified under the amendment.
With the merger of PNB and Allied Bank in February 2013, the Company’s loan balance was
consolidated under PNB. The new loan was recognized at fair value, which is equivalent to its
face value.
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