Danessa Rivera (The Philippine Star)
- October 1, 2019 - 12:00am
MANILA, Philippines — Aboitiz Power
Corp. is issuing up to P12 billion in fixed rate bonds in the middle of
October.
In a disclosure to the Philippine
Stock Exchange yesterday, AboitizPower said it received the Securities and
Exchange Commission’s go signal to issue the third tranche of its P30-billion
debt securities program.
The third tranche will consist of
the primary offer of up to P7 billion with an oversubscription option of up to
P5 billion. The offer commenced yesterday and will run until Oct. 4.
AboitizPower intends to list the
bonds with the Philippine Dealing & Exchange Corp. (PDEx).
Proceeds will be used to repay the
company’s short-term loan obligations and for general corporate purposes.
AboitizPower engaged BDO Capital
& Investment Corp. and First Metro Investment Corp. as joint issue
managers.
BDO Capital, First Metro, China Bank
Capital Corp., SB Capital Investment Corp., and PNB Capital & Investment
Corp. serve as joint lead underwriters.
AboitizPower obtained the highest
credit rating of PRS Aaa for its planned P12-billion fixed-rate bond
offering from local credit watcher Philippine Rating Services Corp.
(PhilRatings). It was also assigned a stable outlook.
Obligations rated PRS Aaa are of the
highest quality with minimal credit risk, which means the issuer’s capacity to
meet its financial commitment on the obligation is extremely strong.
An outlook, on the other hand, is an
indication of the possible direction of any rating change within a one-year
period and serves as a further refinement to the assigned credit rating for the
guidance of investors, regulators, and the general public.
The bonds, which will have a tenor
of seven years, form part of AboitizPower’s three-year shelf registration
of up to P30 billion.
The company issued the first tranche
on July 3, 2017 in the amount of P3 billion, and the second tranche amounting
to P10.2 billion on Oct. 25, 2018.
AboitizPower is targeting 4,000
megawatts (MW) of installed capacity by 2020. So far, it currently has a
beneficial capacity of around 3,200 MW.
It has investments in various
thermal and renewable power generating facilities with a total net sellable
capacity of 3,350 MW with its partners.
Its Cleanergy brand amounts to 1,272
MW, 39 percent of its total net sellable capacity.
The company is pushing for a
balanced mix strategy—maximizing Cleanergy, while taking advantage of the
reliability and cost-efficiency of thermal power plants.
AboitizPower also owns distribution
utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao,
including the second and third largest private utilities in the country.
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