Aboitiz Power Corp to issue P5-billion fixed-rate notes to fund projects

MANILA, Philippines - Aboitiz Power Corp., the holding firm for all the power interests of the Aboitiz family, is issuing P5 billion worth of five-year peso-denominated fixed rate notes through a private placement.

In a disclosure to the Philippine Stock Exchange Friday, Aboitiz Power said it has signed a notes facility agreement with First Metro Investment Corp. as issue manager and Metropolitan Bank & Trust Co. – Trust Banking Group as notes facility agent, as well as a consortium of primary institutional lenders.

The notes will be issued through a private placement to not more than 19 primary institutional investors before the end of September this year.

Proceeds from the bond issue will be used to fund Aboitiz Power’s investments in various projects, including capital expenditures and acquisitions.

In April this year, Aboitiz Power raised P3 billion from its first retail bond issue, which was 2.5 times oversubscribed. 

Aboitiz Power is investing P33 billion for the ongoing construction, rehabilitation and expansion of its geothermal, hydro and coal-fired power plants in various parts of the country. 

These include the Ambuklao and Binga hydropower plants in Benguet province, the Tiwi-Makban geothermal power stations in the provinces of Albay and Laguna, and Sibulan hydropower plant in Davao, which is owned by Aboitiz Power’s subsidiary, Hedcor.

Hydropower accounts for over 60 percent of Aboitiz Power’s generation capacity and the company wants to expand further into renewable energy with the building of new hydropower plants.

Aboitiz Power is a unit of Aboitiz Equity Ventures Inc., a Cebu-based conglomerate that also has interests in banking, transport, property and food.