Business Mirror
18 Jun 2014
ABOITIZ Power Corp. is planning to raise up to P10 billion through a retail bond offering set next quarter.
“At its special meeting on Wednesday, the Board of Directors of Aboitiz Power authorized the issuance, in one or more tranches, of peso-denominated fixed-rate retail bonds up to the aggregate amount of P10 billion, inclusive of any oversubscription,” the power firm said.
The bonds shall be issued in minimum denominations of P50,000 and in multiples of P10,000. The bonds are expected to be offered to the public in the third quarter of the year.
BPI Capital Corp. was tapped as lead arranger and underwriter.
Proceeds of the bond issuance will be used to replenish working capital, partially fund ongoing projects and for other general corporate purposes, it added.
The holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services, earlier said it will pour in as much as P80 billion in investment this year.
The amount forms part of the company’s bold move to add 2,000 megawatts (MW) to its portfolio in the next five years. At present, the company’s power-generation capacity has reached 2,300 MW.
“Together with our partners, we are looking at investing up to P80 billion in the greenfield and brownfield projects across the country in 2014. This is just part of our more ambitious plan to expand our power-generation capacity by about 2,000 MW over the next five years,” Aboitiz Power President and CEO Erramon Aboitiz earlier said.
The additional capacity will be sourced from the 300-MW coal-fired power plant of AP Therma South Inc. in Davao, which is targeted to be completed next year. This power facility could be expanded by another 30 MW.
Also, another 300 MW will be coming from the coal-fired power plant of Therma Visayas in Cebu. The capacity of this facility could be expanded by 150 MW more.
The company is also eyeing an expansion by 400 MW more of the Pagbilao coal plant in Quezon.
Aboitiz Power also recently won in the auction of the 153.1-MW Naga plant in Cebu. Further, the power firm is banking on the planned 600-MW coal-fired power plant of RP Energy in Subic. This power project is a joint venture between Aboitiz and MGen, the power-generation subsidiary of Manila Electric Co.
“We also have an assortment of other plants—hydropower, geothermal and solar,” Aboitiz added.
Aboitiz Power booked a net income of P4.2 billion for the first three months of the year, 9 percent lower compared to the same period a year ago. Core net income declined by 3 percent to P4.4 billion at end-March due to the revaluation of consolidated dollar loans and placements, which, it said, resulted in unrealized non-recurring loss of P211.1 million. source
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