Thursday, April 27, 2017

AboitizPower to offer first tranche of P3-billion retail bonds this year



By Lenie Lectura -

ABOITIZ Power Corp. will initially offer within the year P3 billion of the proposed P30-billion retail bonds.
The power firm filed on Thursday with the Securities and Exchange Commission (SEC) its proposed fixed-rate retail bonds in the aggregate principal amount of P30 billion, to be registered under the shelf-registration program of the SEC.
The first tranche of the bonds, equivalent to P3 billion, will be offered to the general public in 2017. As the need arises, AboitizPower will issue subsequent tranches of the bonds.
Proceeds from the first tranche of the bonds will be used to finance an investment into a company partly owned by AboitizPower.
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AboitizPower appointed BPI Capital Corp. as the issue manager and underwriter, and BPI Asset Management and Trust Corp. as the trustee for the first tranche.
The company intends to list the first tranche of the retail bonds with the Philippine Dealing and Exchange Corp. Aboitiz, together with partners, is expected to complete five more power projects this year with a total capacity of over 800 megawatts (MW).
AboitzPower President and COO Antonio Moraza has said the company continues to push its balanced-mix strategy into the year, with coal and hydro plants, underlining the company’s strategy to have a wide and diverse portfolio of generating assets.
“That has always been part of the strategy, to tap renewable energy as long as it is available and cost-effective for the consumers, but at the same time,  utilize the reliability of thermal-power plants,” Moraza said.
The company is targeting to achieve a 4,000-MW net sellable capacity by 2020.

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