Tuesday, August 26, 2014

AboitizPower wins approval for bond issue

Business World Online
Posted on August 26, 2014 09:34:00 PM

ABOITIZ POWER Corp. (AboitizPower) said it secured approval for its planned bond issue, which will raise up to P10 billion to “replenish” its working capital.

In an en banc meeting on Tuesday, the Securities and Exchange Commission approved the company’s seven- and 10-year fixed-rate bonds, with principal set at P5 billion and an oversubscription option of another P5 billion.

BPI Capital Corp. is the transaction’s issue manager and lead underwriter, while BPI Asset Management and Trust Group is the trustee.

The company’s registration statement filed on June 18 showed that the proceeds will be used to fund its projects, including: the 400-megawatt (MW) pulverized coal-fired expansion unit 3 in Pagbilao, Quezon province, the 68-MW Manolo Fortich Hydropower Plant in Bukidnon province, the 300-MW Cebu Coal Project, 300-MW Davao Coal Project, and the 14-MW Sabangan Hydropower Plant Project in Mountain Province, Benguet.

Philippine Rating Services Corp. has given the bonds a PRS Aaa rating, citing the company’s “sustained high levels of cash and cash flows” in relation to debt service requirements; “conservative capital structure,” which may accommodate additional debt and is supported by “healthy growth in retained earnings,” as well as a diversified portfolio with “good growth prospects” and an experienced management team.

AboitizPower, a unit of Aboitiz Equity Ventures, Inc., posted a first-half net profit of P8.9 billion, down 6% to year on year.

On Tuesday, AboitizPower shares lost 15 centavos or 0.38% to close at P38.85. -- Daphne J. Magturo source

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