AboitizPower plans P16.8 billion bonds in second half of 2019

MANILA, Philippines — Aboitiz Power Corp. plans to issue up to P16.8 billion fixed-rate bonds in the second half.

In a disclosure to the Philippine Stock Exchange yesterday, AboitizPower said its board approved the issuance of the third tranche of its P30-billion shelf registered bonds amounting up to P16.8 billion.

“Subject to market conditions, the third tranche bonds is expected to be offered to the general public in the second half 2019 and shall be listed with the Philippine Dealing and Exchange Corp. (PDEx) as and when issued,” it said.

The final issue price, interest rate, tenor, and other terms and conditions of the bonds will be set by the management.

AboitizPower said the proceeds of the third tranche would be used to “finance planned acquisitions, future investments, and/or other corporate requirements.”

The company issued the first tranche out of the shelf registered bonds on July 3, 2017 in the amount of P3 billion.

The first tranche bonds will be traded on the secondary market with a fixed interest rate of 5.3367 percent per annum. The bonds will mature on July 3, 2027.

The company then launched the second tranche on Oct. 25, 2018 amounting to P10.2 billion.

AboitizPower is targeting 4,000 megawatts (MW) of installed capacity by 2020. So far, the company has a beneficial capacity of around 3,200 MW.

It has investments in various thermal and renewable power generating facilities with a total net sellable capacity of 3,350 MW with its partners. Its Cleanergy brand amounts to 1,272 MW, 39 percent of its total net sellable capacity.

The company is pushing for a balanced mix strategy—maximizing Cleanergy, while taking advantage of the reliability and cost-efficiency of thermal power plants.

AboitizPower also owns distribution utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao, including the second and third largest private utilities in the country.