Manila, December 2, 2008
—IFC, a member of the World Bank Group, has signed a loan agreement with the Energy Development Corporation, the largest emerging-market geothermal producer, to help the company with its renewable-energy initiatives and to improve efficiency in the geothermal energy sector in the Philippines and the wider region.
IFC’s15-year loan of 4.1 billion Philippine pesos ($82 million) will enable EDC to acquire more geothermal assets. The company is the dominant geothermal steam and power producer in the Philippines, with 60 percent of the country’s installed geothermal capacity.
The company, formerly a state-owned enterprise called the Philippine National Oil Company Energy Oil Development Corporation, undertook a staged privatization that began with its initial public offering in December 2006. IFC acted as a cornerstone investor and also has helped EDC adopt best practices in corporate governance during its transition from a stated-owned enterprise to a fully private company.
"This loan from IFC is a testament to EDC's long-term vision of being not only the largest renewable energy company in the country but also to share its cutting-edge geothermal technology with the region and the world,” said EDC President Paul A. Aquino. “Despite the current financial crisis, IFC has proven to be our reliable partner in the development of this vital indigenous resource".
Jesse Ang, IFC Resident Representative for the Philippines, said, “As a supporter of environmentally sustainable companies, IFC is pleased to work once again with EDC in its efforts to mitigate climate change, and our financing of renewable energy producers like EDC is a demonstration of this commitment.”
IFC has been investing in the Philippines for more than 40 years and established an office in Manila in 1977. As of June 2008, the country ranked second among IFC’s exposures in the East Asia and Pacific Region, with about $898 million in 32 projects. To complement its growing investments, IFC is also expanding its advisory services to include public-private partnerships and supporting the development of small and medium enterprises. IFC is focusing on Mindanao, and in 2006 opened an office in Davao City.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 per cent increase over the previous year. For more information, visit
www.ifc.org
.
