IFC open to raising equity in Energy Development

The International Finance Corp., the World Bank's investment arm, is open to increasing it equity stake in Energy Development Corp., the country's largest geothermal company, an official said over the weekend. The Lopez Group, which controls Energy Development, has not sent word over to the IFC on possibility of infusing additional stake in the company, but IFC is willing to support the company, Jesse Ang, the IFC resident representative, told reporters in an interview. "I think we've put enough equity in Energy Development already, though we'll never know. Right? But we will continue to support them as they need," he said. "So, will we increase our investments in Energy Development? Yeah, we probably would," Ang said EDC is presently asking IFC for a $75 million loan and another $75 million from bilateral sources. Proceeds of the loans will be used to partly finance the company’s medium-term capital expenditure plan. The company reported its net income grew by 68 percent to P3.80 billion in the first quarter from P2.27 billion a year earlier. As to how much IFC is willing to invest in Energy Development, Ang said, "Well it depends if I get invited. Like I said, my business is not programming. I can program all I want but I have to get invited." IFC bought a 5-percent stake in Energy Development for $50 million during the company’s primary offering in 2006. "We did the equity in the beginning because it was a key investment, and now it's a fully privatized company and so I think it was a good thing to do," Ang said. IFC also supported EDC through the grant of loans. Energy Development obtained a P4.1 billion loan from the IFC in November 2008 to finance the company's medium term capital expenditures. —VS, GMANews.TV