Aboitiz Power plans P30 billion bond issuance

MANILA, Philippines — Aboitiz Power Corp. plans to raise P30 billion anew from the issuance of retail bonds, with the first tranche expected to be launched in the first quarter of next year.

In a disclosure to the Philippine Stock Exchange yesterday, AboitizPower said it would issue peso-denominated fixed-rate retail bonds amounting to P30 billion.

This follows the  approval from the board to file a registration statement under the shelf registration program of the Securities and Exchange Commission (SEC).

The company will initially issue P8 billion, consisting of P4 billion and an oversubscription of up to P4 billion.

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 will be determined by the company’s management.

AboitizPower said proceeds of the first tranche would  be used to refinance corporate debts and for other general corporate purposes.

For next year, AboitizPower has allocated P24 billion for  capital expenditures to fund ongoing projects.

These projects include the continued construction of 668x2-megawatts (MW) super critical coal-fired power plant of GNPower Dinginin Ltd. Co. in Bataan, the 49-MW energy storage project of Therma Marine Inc. in Compostela Valley, as well as the 20-MW energy storage and 67-MW floating solar projects of SN-Aboitiz Power (SNAP).

The company has already surpassed its target of 4,000 MW of attributable capacity this year with the addition of GNPower Dinginin.

Over the next 10 years, AboitizPower said it would shift  its overall energy mix into almost 50:50 thermal and Cleanergy capacities by 2030.

Its renewable energy portfolio is currently at 940 MW, with the goal of hitting close to 1,800 MW.

To date, the Aboitiz Group and its partners produce 4,471 MW of total net sellable capacity of electricity from both thermal and renewable power sources.