Published March 24, 2017, 10:00 PM By Myrna M. Velasco
The board of directors of Aboitiz Power Corporation has given go-signal on the issuance of P30 billion worth of Philippine currency-denominated fixed retail bonds, of which yield will partly bankroll planned project expansions.
According to AboitizPower President Antonio R. Moraza, “the proceeds will be used for potential acquisitions and future projects.”
The Aboitiz firm noted that its board has approved “the issuance of peso-denominated fixed-rate retail bonds in the aggregate of up to P30 billion, to be issued on one or more tranches depending on market conditions.”
It emphasized that the retail bonds “will be registered under the shelf registration program of the Securities and Exchange Commission.”
The first tranche, it added, is due to be offered to the general pubic this year and shall be listed with the Philippine Dealing and Exchange Corporation.
“The board of directors delegated to management the final determination of the offer price, tenors and other terms and conditions of the retail bonds,” the company has stated in its disclosure to the Philippine Stock Exchange.
The company has not specified the targeted ventures – but the known pending acquisitions of the Aboitiz Group are the power plants of GNPower and Ayala Group in Bataan.
That will be a combination of commercially operating asset and a greenfield development via the ongoing 668-megawatt Dinginin coal-fired power plant venture – latched on to a monumental transaction of $1.2 billion.