2014 Financial Statement

EDC 2014 Performance Report
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
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 bears a coupon rate
of 6.6173% and 6.6108% per annum, respectively. FRCN Series One and Series Three were
originally scheduled to mature in July 2014 while FRCN Series Two was originally scheduled to
mature in July 2016.
EDC recognized loss amounting to ₱114.7 million arising from early extinguishment of FRCN in
2012 (see Note 26).
Debt issuance costs amounting to ₱100.2 million was capitalized as part of the new FXCN.
Refinanced Syndicated Term Loan
On June 17, 2011, the Parent Company had 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.
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