October 26, 2018 | 12:08 am
ABOITIZ POWER Corp. is
considering whether to go back to the bond market or source funding from banks
to pay for its acquisition of a bigger stake in the coal-fired power plant
platform of Ayala-led AC Energy, Inc., the company’s finance official said.
“There are several
options open to us,” Liza Luv T. Montelibano, AboitizPower senior
vice-president and chief financial officer, told reporters during the listing
of the company’s P10.2-billion fixed rate bonds on Thursday.
She said the company
has a shelf registration of P30 billion for bonds, of which a first tranche
last year amounted to P3 billion, leaving a remainder of P16.8 billion until
2019, the final year approved for the issuance.
“Whether we will get it
as a third tranche, [whether] we’re getting it from another loan, we’re still
finalizing,” Ms. Montelibano added.
For the second tranche,
AboitizPower issued P7.7 billion in fixed rate bonds due on Jan. 25, 2024 at an
interest rate of 7.5095% per annum, and P2.5 billion in fixed rate bonds due on
Oct. 25, 2028 at 8.5091% per annum.
Ms. Montelibano said
the funds raised from the offering will be used in part to refinance a loan for
the acquisition of a power plant in Mariveles, Bataan.
In late 2016,
AboitizPower subsidiary Therma Power, Inc. bought a 66.1% stake in GNPower
Mariveles Coal Plant Ltd. Co. and 40% in GNPower Dinginin Ltd. Co. in line with
its target to increase its energy capacity to 4,000 megawatts (MW) by 2020.
In September this year,
AboitizPower bought voting and economic stakes in AA Thermal, Inc., the thermal
power company of Ayala-led AC Energy, Inc. The acquisition will give it a 49%
voting stake and 60% economic stake in the thermal platform.
GNPower Mariveles is
the owner and operator of an operating two-unit coal plant in Bataan, each with
a capacity of 316 MW. GNPower Dinginin is developing a supercritical coal-fired
power plant with two identical units with a net capacity of 668 MW each.
AC Energy said once the
transaction is completed, the acquisition will increase AboitizPower’s
ownership in the Mariveles coal plant to 78.325%, and in the Dinginin coal
plant project to 70%. The Mariveles plant has been operating since 2013, while
the first unit of the Dinginin plant is expected to go online in 2019.
Closing of the
transaction is subject to the satisfaction of certain conditions precedent,
including the approval by the Philippine Competition Commission.
Ms. Montelibano said
the need to fund the latest acquisition would come if the deal is approved by
the antitrust watchdog.
She said AboitizPower
is still aiming for a “balanced” energy mix even as the deal shifted its
portfolio towards a greater share of facilities powered by coal.
“I will call it as
balanced,” she said, adding that the nature of the business could result in a
big shift in the mix as thermal plants have huge capacities as compared to
those of renewable energy projects.
For now, she said the
portfolio is tilted towards 75% coal plants and 25% renewables. She added that
the company at present has an attributable capacity of 3,200 MW, although the
target 4,000 MW is “in the bag” when the new power plants come online.
On Thursday, shares slipped
1.93% to close at P33 each. — Victor V. Saulon
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