MANILA, Philippines - AboitizPower, the power generation company of the Aboitiz Group, is on track to proceed with at least six new power projects in the next two years after successfully raising P10 billion from a recent bond sale.
The company listed yesterday its second and largest bond issuance at the Philippine Dealing and Exchange Corp. (PDEX) on the back of strong investor demand for its seven and 12-year bonds.
From the base size of P5 billion, investor demand prompted the power generation company to double the transaction size to P10 billion.
“This is a testament to AboitizPower’s continued expansion and the investing public’s confidence in our growth story,” said Antonio Moraza, AboitizPower president and chief operating officer.
The company will use proceeds of the bond sale to partially finance at least six projects in the pipeline.
These are the 14-megawatt Sabangan hydro plant in Luzon which will be operational by early 2016; the 400-MW coal-fired Pagbilao 3 plant which has already broken ground and will augment the urgent need for additional capacity in the Luzon grid; the 300-MW Davao coal-fired plant which will help address the power shortfall in Mindanao; the 68-MW Manolo Fortich hydro plant in Bukidnon whose construction is currently ongoing; and the 300-MW coal-fired power plant in Toledo, Cebu which will break ground later this year.
The projects are in line with the company’s expansion plan, officials said.
Under the plan, AboitizPower has allotted a capital expenditure budget of P80 billion to increase its power generation capacity by 2,000 MW in the next five years.