Aboitiz power unit to raise P30 billion in new fundraising push
![Aboitiz power unit to raise P30 billion in new fundraising push](https://media.philstar.com/photos/2019/12/04/power-grid2019-11-2912-12-48_2019-12-04_12-00-46.jpg)
MANILA, Philippines — The listed power arm of the Aboitiz Group will return to the debt market and borrow P30 billion from retail investors to keep the company afloat amid the coronavirus onslaught.
The hefty amount to be raised is part of a new, multi-tranche retail bond program that will be registered with the Securities and Exchange Commission, Aboitiz Power Corp. said in a disclosure to the stock exchange on Tuesday.
If the registration is approved, AboitizPower said it will proceed with the first tranche of the offering amounting to P4 billion, which can be hiked by another P4 billion if there's robust investor demand for the issuance.
The initial offer is expected to take place in the first quarter of 2021, the exact timing of which will be subject to market conditions, AboitizPower said. Proceeds from the retail bonds sale will be used to repay the company's old debts "and/or for other general corporate purposes," it added.
"The Board of Directors delegated to the Company’s management the determination of the final issue amount, interest rate, offer price, tenors, and other terms and conditions of the Retail Bonds, including the parties that will manage or otherwise be involved in the offer," the company said.
AboitizPower's decision to embark in a new fundraising activity came after completing the final round of a P30-billion bond program that corporate regulators approved in July 2017.
The previous bond shelf was offered in four tranches, with the last tranche issued in June this year where the company raised up to P9.55 billion to fund new investments into its thermal power business.
OnTuesday, shares in Aboitiz Power closed up 0.55% to P27.35 each.
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