AboitizPower Oks P10 billion bond issue

MANILA, Philippines — Aboitiz Power Corp. has approved the issuance of up to P10 billion worth of fixed-rate retail bonds in the first quarter of next year.

In a disclosure to the Philippine Stock Exchange, Aboitiz Power said the approved issuance is the third tranche of its P30 billion bonds registered in March 2021 under the shelf registration program of the Securities and Exchange Commission (SEC).

“Subject to market conditions, the third tranche bonds is expected to be offered to the general public in the first quarter of 2022 and shall be listed with the Philippine Dealing and Exchange Corp. (PDEx) as and when issued,” AboitizPower said.

It added that proceeds of the third tranche bonds will be used for refinancing and/or future renewable projects.

The company appointed BDO Capital & Investment Corp. and China Bank Capital Corp. as joint issue managers; and BDO Capital and ChinaBank Capital as joint lead underwriters and joint bookrunners.

AboitizPower issued the first tranche of the shelf registered bonds on March 16 this year.

The second tranche was issued on Dec. 2.

The company said earlier that the proceeds of the second tranche would be used for refinancing, general corporate purposes and/or future renewable projects.

Aboitiz Power said earlier it 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.

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.