The project sponsor is First Gen Corporation, through Red Vulcan Holdings which controls 60% voting rights of EDC. Red Vulcan is controlled by the First Gen Corporation- the largest integrated independent power producer in the Philippines. In addition to the 60% voting rights of Red Vulcan, First Gen owns direct investment in EDC of 2.45% and has a call option for up to 3.12% more shares in EDC. Finally, First Gen directly owns 5% of EDC’s common shares. First Gen is member of the Lopez group of Companies- one of the oldest conglomerates in the Philippines with holdings in Media, Telecommunications, Energy and Property.

The proposed IFC investment will be a $75 million A loan and the potential mobilization of another $75M from bilateral sources. The proceeds of the loans will be used to partially finance the company’s medium term capital expenditure plan.

75.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	75.0
Equity

* These investment figures are indicative

The company is headquartered in Metro Manila, Philippines, and its major projects are located on the islands of Luzon, Leyte, Mindanao, and Negros island.

EDC is the largest company currently utilizing geothermal sources of energy in the Philippines, thus our support will provide critical additional resources of an appropriate tenor to help develop projects in the geothermal energy sector and thereby, help the country move toward greater reliance on private sources of growth in the renewable infrastructure sector. The investment also underpins IFC’s key strategy of supporting climate change mitigation projects in emerging markets.

IFC’s role in this third investment will be to provide fixed rate, long term local currency financing not readily available locally. IFC, together with the parallel lenders would fill a critical funding gap as the Company finances its medium term capital expenditure program. IFC intends to continue its support for the Company as it expands its operations to other developing countries.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects. IFC''s review has concluded that the company''s environmental and social management system is functioning well to manage existing operations and future development projects in an environmentally and socially sound way and their current performance levels are in general consistent with the requirements of the IFC''s Performance Standards on environmental and social sustainability. EDC has provided information on its current practices and policies that address environmental and social risks and impacts to ensure that there is continued compliance with host country laws and regulations and IFC''s Performance Standards (PS). The proposed transaction is a repeat investment for IFC, and the Company has already adopted and operationalized IFC environmental and social Performance Standards as part of the applicable legal and other requirements in its management system, including formal procedures for environmental and social screening of business opportunities and new projects into its marketing strategy, commercial planning, and project bidding/acquisition processes.