Aboitiz Power raises P9.55 billion from retail bond issuance
Danessa Rivera (The Philippine Star) - July 7, 2020 - 12:00am

MANILA, Philippines — Aboitiz Power Corp. has raised P9.55 billion from its retail bonds issuance, which will be listed on the Philippine Dealing and Exchange Corp. (PDEx).

In a disclosure to the Philippine Stock Exchange yesterday, Aboitiz Power said it secured approval from PDEx to list the fourth tranche of its P30-billion debt securities program.

“The PDEx approval paves the way for the secondary market trading of the bonds,” the firm said.

The fourth tranche consists of the principal amounting to P6 billion and an oversubscription option of up to P3.55 billion.

The bonds were issued in two series: Series E fixed rate bonds due 2022 with interest rate of 3.125 percent per annum, and Series F fixed rate bonds due 2025 with interest rate of 3.935 percent.

The offer period was from June 19 to 26, and the bonds were issued yesterday.

Earlier, Aboitiz Power said the proceeds would be used primarily to reimburse its equity infusions in AA Thermal Inc. to fund succeeding equity infusions in AA Thermal and to fund equity infusions in Therma Power Inc.

Last year, AboitizPower acquired AA Thermal – part of AC Energy Inc.’s thermal platform – for $572.9 million.

The acquisition raised its ownership in GNPower Mariveles Coal Plant Ltd. Co., the owner and operator of an operating 2x316-megawatt (MW) coal plant in Mariveles, Bataan, and in GNPower Dinginin Ltd. Co., which owns the 2x668-MW supercritical coal-fired power plant located in Mariveles, Bataan still under construction.

GNPower Dinginin was supposed to be completed in 2019, but was pushed back to this year. However, completion was further delayed to the third quarter of the year due to the impact of COVID 19 pandemic.

For the issuance, Aboitiz Power appointed BDO Capital & Investment Corp., China Bank Capital Corp. and First Metro Investment Corp. as joint issue managers and joint lead underwriters; BDO Unibank Inc. – Trust and Investments Group as trustee and Philippine Depository & Trust Corp. as the registrar and paying agent.

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