AboitizPower plans to raise up to P12 billion from bond offer

MANILA, Philippines — Aboitiz Power Corp. plans to raise as much as P12 billion from  its planned fixed-rate bond offering in the fourth quarter of the year.

The company has filed an application with the Securities and Exchange Commission (SEC) to issue the third tranche of its P30-billion debt securities program.

In its application, the firm said the third tranche would consist of the primary offer of as much as  P10 billion with an oversubscription option of up to P2 billion.

“AboitizPower will use the proceeds of the third tranche bonds for  repayment of its short-term loan obligations and general corporate purposes,” the listed firm said.

For this offering, it tapped BDO Capital & Investment Corp. and First Metro Investment Corp. as joint issue managers and lead underwriters along with First Metro, China Bank Capital Corp., SB Capital Investment Corp., and PNB Capital & Investment Corp.

AboitizPower intends to list the bonds with the Philippine Dealing and Exchange Corp.

The company issued the first tranche on July 3, 2017 in the amount of P3 billion, and the second tranche on Oct. 25, 2018 in the amount of P10.2 billion. 

It is targeting 4,000 megawatts of installed capacity by 2020, So far, AboitizPower  has a beneficial capacity of around 3,200 megawatts.

AboitizPower 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 produces 1,272 MW, 39 percent of its total net sellable capacity.

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

It 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.