MANILA, Philippines - Aboitiz Power Corp. will initially offer up to P3 billion worth of 10-year bonds to fund the expansion of a subsidiary.
The bonds will form part of the company’s three-year shelf registration with the Securities and Exchange Commission.
Proceeds from the offering will be used to finance an investment into a company partly-owned by AboitizPower.
The issue was assigned the top credit rating of PRS Aaa and a stable outlook by Philippine Rating Services Corp. for the power firm’s outstanding P10 billion retail bonds.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
PhilRatings considered AboitizPower’s significant levels of cash and cash flows in relation to debt service requirements, adequate capital structure, diversified portfolio, and its experienced management team.
An outlook is an indication as to the possible direction of any rating change within a one-year period and serves as a further refinement to the assigned credit rating for the guidance of investors, regulators, and the general public.
AboitizPower is one of the leading power generation and distribution companies in the country. Through the years, the company has accumulated interests in hydroelectric, geothermal, solar, coal-fired and oil-fired power plants.