Monday, July 24, 2017

AboitizPower to issue 10-yr bonds worth P2B next month



By Lenie Lectura - June 19, 2017

ABOITIZ Power Corp. (AboitizPower) will initially issue P2 billion worth of 10-year bonds next month, following regulatory approval sought on Monday.
The power firm received the order of registration and certificate of permit to offer securities for sale dated June 19 from the Securities and Exchange Commission (SEC) in relation to AboitizPower’s application for the issuance of fixed-rate retail bonds in the aggregate amount of up to P30 billion.
The first tranche equivalent to P2 billion, with an oversubscription of P1 billion, will be issued on July 3, while the remaining balance shall be lodged under the shelf-registration program of the SEC to be issued in future tranches.
The public offer for the first tranche will commence on June 20, and will end on June 23.
AboitizPower engaged BPI Capital Corp. as the issue manager and underwriter for the first tranche, BPI Asset Management and Trust Corp. as the trustee, and the Philippine Depository and Trust Corp. (PDTC) as the registrar of the bonds.
The company intends to list the bonds with the Philippine Dealing and Exchange Corp. (PDEx).
The bonds earlier received the highest possible rating of “PRS Aaa” from the Philippine Rating Services Corp. The proceeds, the company said earlier, will be used to finance potential acquisitions, future investments and other general corporate requirements.
Aboitiz, together with partners, is expected to complete five more power projects this year with a total capacity of over 800 megawatts (MW).
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.
It is targeting to achieve 4,000 MW of net sellable capacity by 2020.

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