AboitizPower to issue up to P10 billion bonds

MANILA, Philippines — Aboitiz Power Corp. is issuing up to P10 billion worth of fixed-rate retail bonds within the first quarter, partly to funds its Cleanergy portfolio expansion.

In a disclosure to the Philippine Stock Exchange yesterday, AboitizPower said it filed an application with the Securities and Exchange Commission (SEC) to issue the third tranche of its P30-billion fixed-rate retail bonds registered on March 1, 2021 under the shelf registration program of SEC.

“The third tranche bonds, with an aggregate principal amount of up to P10 billion, including oversubscription, is expected to be issued in one or two series in the first quarter of 2022,” AboitizPower said.

AboitizPower said it would use the proceeds to refinance the company’s previously issued bonds, fund the construction of future renewable projects and other general corporate purposes.

It tapped BDO Capital & Investment Corp., China Bank Capital Corp., and First Metro Securities Brokerage Corp. (FMIC) as joint issue managers.

Meanwhile, BDO Capital, ChinaBank Capital, FMIC, and Security Bank Corp. were appointed as joint lead underwriters and joint bookrunners.

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

The P8-billion first tranche of the P30-billion shelf registration of debt securities was issued in March last year.

Last month, the company raised P12 billion from the issuance of the second tranche of its P30-billion debt securities program, which will also be used for refinancing, general corporate purposes and/or future renewable projects.

After reaching its 4,000-megawatt (MW) target in attributable capacity in 2020, the company has set its sights on doubling its attributable net sellable capacity to 9,200 megawatts (MW) by 2030.

Of the new target, 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.

AboitizPower plans to spend P190 billion in the next 10 years to build 3,700 MW under its Cleanergy portfolio.

As of October, the company had already identified 3,500 MW of new RE projects across the country, all in varying stages of development.

Its renewable energy portfolio is currently at 940 MW.

To date, the Aboitiz Group and its partners produce 4,471 MW of total net sellable capacity of electricity from both thermal and renewable power sources.