IFC puts M in PNOC-EDC IPO
Wednesday, December 13, 2006
By MYRNA M. VELASCO
The International Finance Corporation, the private sector arm of the World Bank group, is cornering 5.0-percent equity for million in the scheduled initial public offering (IPO) of state-run Philippine National Oil Company-Energy Development Corporation (PNOCEDC) this December 13.
"IFC’s investment in PNOC-EDC fits our strategy of supporting infrastructure investments and promoting renewable energy development," Vipul Bhagat, IFC country manager for Philippines and Thailand, said in a press statement.
The Bank’s equity investment is part of PNOCEDC’s primary stocks offering, cornered mostly by institutional investors, which also include the Government of Singapore Investment Corporation (GIC).
It was noted that the cash raised by PNOC-EDC from its stocks listing will be used to bankroll future power projects and the upgrading of its equipment, including drilling rigs.
"With the success of the IPO and the improved access to capital markets, PNOC-EDC can become a global player in the development of geothermal resources," added IFC’s Director for Subnational Finance Vincent Gouarne.
Subnational Finance is a joint initiative of the World Bank and IFC supporting subnational entities, such as local governments and public economic enterprises, in their financial programs without requiring for government guarantees.
Meanwhile, PNOC-EDC president Paul A. Aquino believes that the IFC investment is "an affirmation of our energy strategy to attract private sector participation and explore new sources of renewable energy."
The state-run energy firm is currently the largest producer of geothermal energy in the country; and has been setting a goal to be the world’s number one on that sphere.
Its current installed capacity is placed at 1,142 megawatts. Its geothermal portfolio includes the Leyte, Bacon-Manito, Mt. Apo and Palinpinon geothermal facilities.
The other investors planning to acquire its shares have probed deeply into the company’s future development programs, noting that these will help shore up the value of the stocks later on.
PNOC-EDC noted that it is targeting to raise 0 million from the stock offering; and this will be significantly aligned for future investments.
Apart from its programmed projects in new geothermal facilities, PNOC-EDC is also diversifying its ventures into renewable energy development, such as wind. (MMV)
posted by philpower @ 8:54 AM,
