EDC 2014 SR (UPDATED)

EDC 2014 Performance Report
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 Philippine Dealing & Exchange Corp.
(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 semiannually
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 Company to partially fund the 87MW Burgos wind project
located in the municipality of Burgos, Ilocos Norte with estimated project cost of US$300.0
million. Any difference between the total construction costs and the net proceeds of the bonds
will be sourced from internally generated cash, existing credit lines, and other potential
borrowings.
Pending disbursement for the construction of Burgos Wind Project, the Company invests the net
proceeds in short-term liquid investments including, but not limited to, short-term government
securities, bank deposits and money market placements which are expected to earn prevailing
market rates.
The Parent Company undertakes that it will not use the net proceeds from the bonds for any other
purpose, other than as discussed above. In the event of any deviation or adjustment in the planned
use of proceeds, EDC shall inform the bondholders and the SEC within 30 days prior to its
implementation.
The Company capitalized in its consolidated financial statements the actual borrowing costs
incurred on the bonds amounting to ₱263.0 million and ₱140.8 million for the periods ending
December 31, 2014 and 2013, respectively.
US$ 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 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.
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