Macquarie-GIC to support Energy Development Corp’s geothermal growth

04 October 2017 - 12:00 am UTC

A consortium of Macquarie managed funds and GIC will back Manila-based Energy Development Corp (EDC)’s plans to expand its geothermal power capacity.

The consortium’s Philippines Renewable Energy Holdings (PREHC) and EDC’s majority stakeholder, First Gen Corp, marked the start of their “strategic partnership” yesterday (3 October) following a successful tender offer to acquire 31.7% of Energy Development Corp’s total outstanding voting shares for approximately USD 1.3bn. 

First Gen will retain a 60% voting stake in EDC but a 40% economic stake. 

Energy Development Corp has 1,471MW of power assets in its portfolio, including geothermal, hydro, wind and solar.  The developer is “actively exploring opportunities for viable geothermal development in the Philippines and abroad”, a First Gen spokesperson told Inframation. 

Energy Development Corp is the largest vertically-integrated geothermal company in the world with 1,169MW capacity. It has also looking at opportunities in Indonesia as well as Chile and Peru, as reported. 

In the Philippines, the developer also owns 150MW of wind, 132MW hydro and 7.85MW solar. 

The Energy Development Corp investment marks the Singapore sovereign wealth fund’s first infrastructure commitment to the Philippines. GIC was previously part of a Macquaire and Malakoff consortium formed to bid for Sithe Global’s two Filipino coal power plants in 2016, as reported.

GIC will hold a 40% stake in PREHC and the rest is owned by Macquarie-managed funds. 

Macquarie Infrastructure and Real Assets (MIRA)’s senior managing director David Luboff and executive director David Baldwin have been appointed EDC directors and board committee members.

Energy Development Corp