MANILA, Philippines — Aboitiz Power Corp. will fully redeem its 2018 Series B bonds a little over a year ahead of schedule.
AboitizPower, in a stock exchange filing, said it is exercising its optional redemption right to redeem all of its outstanding 5.25-year fixed-rate retail bonds issued on October 25, 2018 ahead of its January 2024 maturity schedule.
The retail bonds have an aggregate principal amount of P7.7 billion.
Through the optional redemption, AboitizPower said it would prepay its 2018 Series B bonds at an optional redemption price of 100.25 percent of their face value on October 25, 2022.
The company said it is coordinating with BDO Unibank Inc. Trust and Investment Group and the Philippine Depository and Trust Corp., the trustee, and registrar and paying agent, respectively, for the corresponding notices and computation of the amounts due to the bondholders of the 2018 Series B bonds.
AboitizPower, the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services, plans to spend around P190 billion over the next decade for an additional 3,700 megawatts (MW) under its Cleanergy portfolio.
This is expected to result in a 50:50 balance between its renewable and thermal capacities by 2030.
AboitizPower subsidiary Hedcor, meanwhile, has been recognized by the Department of Energy (DOE) as a compliant participant of Retail Competition and Open Access (RCOA) scheme, which ensures the company can continue providing customers with clean and reliable energy.
The recognition covers 18 Hedcor facilities across the country, including FLS, Labay, Lon-oy, Ampohaw, Bineng 3, Irisan 3, and Sal-angan hydros in Luzon, as well as the Manolo Fortich, Talomo, Sibulan, and Tudaya hydros in Mindanao.
“Hedcor has been generating power from renewable energy sources for more than 40 years. We are determined to provide the country with a reliable, sustainable, and reasonably-priced supply of renewable energy,” Hedcor vice president for operations and maintenance Leo Lungay said.
RCOA is a government mechanism established by the Electric Power Industry Reform Act of 2001 that allows energy consumers with an average monthly consumption of one MW to look for their own retail electricity suppliers and can customize their supply contracts according to dispatch, technology, or power plant.
Customers can access clean electricity produced by Hedcor since they have qualified for the RCOA scheme.
“We are in the business of producing clean, zero-emissions electricity through run-of-river hydroelectric facilities that harvest the energy from flowing rivers. Hence, we are upscaling our operations and processes to ensure dependable power for our customers, and in support of DOE’s Open Access,” Lungay said.