Ian Nicolas Cigaral (Philstar.com) -
June 22, 2020 - 2:28pm
MANILA, Philippines — Aboitiz’s
power unit is looking to tap individual retail investors to raise up to P9.55
billion and fund new investments into its thermal power business.
In a disclosure to the local bourse
on Monday, Aboitiz Power Corp. said corporate regulators approved the company’s
plan to offer P6 billion fixed-rate retail bonds, with a space to hike it by
another P3.55 billion should there be good investor demand for the issuance.
The offer will run from June 19 to
26, with bonds expected to be settled by July 6.
The issuance is the culmination of
the offer process that started in April when Aboitiz, amid a tumultuous equity
market at the start of the lockdown, approached the Securities and Exchange
Commission (SEC) to exhaust the remaining the balance of its P30-billion bond
shelf secured July 2017.
The amount of the bond shelf
corresponds to the value a company may borrow by floating securities. The
latest issuance would mark the fourth tranche of fund raising after the P3
billion raised in July 2017, P10.2 billion in October 2018 and P7.25 billion
borrowed in October 2019.
“The proceeds of the bonds will be
used to reimburse equity infusions into AA Thermal Inc. and to fund succeeding
infusions into AA Thermal…,” Aboitiz said in a March 31 disclosure. Last year,
Aboitiz acquired 49% voting stake on AA Thermal, the thermal platform of AC
Energy Inc owned by Ayala Corp.
The money would also be funneled
into Therma Power Inc. to help in financing “the construction of the 2x668 MW
super critical coal-fired power plant of GN Power Dinginin Ltd. Co.,” the
company said.
For the latest retail bond float,
Aboitiz Power hired BDO Capital & Investment Corp., China Bank Capital
Corp. and First Metro Investment Corp. as joint issue managers and joint lead
underwriters.
Shares in Aboitiz Power closed up
2.16% to P28.40 apiece on Monday.
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