SEC OKs AboitizPower’s P12 billion bond issue

MANILA, Philippines — Aboitiz Power Corp. was cleared by Securities and Exchange Commission (SEC) to sell up to P12 billion fixed-rate retail bonds next month.

In a disclosure to the Philippine Stock Exchange yesterday, AboitizPower said it received the permit issued by SEC to issue the second tranche of its P30-billion peso-denominated fixed-rate retail bonds registered under the shelf registration program of SEC.

The second tranche bonds consist of a P6-billion principal amount and an oversubscription option of up to P6 billion.

AboitizPower targets to issue the second tranche bonds on Dec. 2, with offer period from Nov. 15 to 19.

Liza Montelibano, AboitizPower CFO, earlier said proceeds of the second tranche bonds would be used for refinancing, general corporate purposes and/or future renewable projects.

The company plans to double its attributable net sellable capacity to 9,200 megawatts (MW) by 2030, of which 4,600 MW should come from various renewable energy (RE) developments to balance out its renewable and thermal capacities as part of its greener transition.

In the next 10 years, AboitizPower plans to spend P190 billion to build 3,700 MW under its Cleanergy portfolio.

So far, the company has already identified 2,900 MW of new RE projects, all in varying stages of development and located primarily in Luzon.

Last September, the Philippine Ratings Services Corp. issued a credit rating of PRS Aaa with a Stable Outlook for AboitizPower’s second tranche bonds. The credit rating agency also maintained an issue credit rating of PRS Aaa, with Stable Outlook, for the power firm’s outstanding P38 billion retail bonds.

AboitizPower has engaged BDO Capital & Investment Corp., China Bank Capital Corp., First Metro Investment Corp., and Security Bank Capital Investment Corp. as joint issue managers, joint lead underwriters, and joint bookrunners.