ABOITIZ POWER CORP. (AboitizPower) has begun offering up to P30 billion in fixed-rate retail bonds, with proceeds intended to refinance existing obligations.
In a regulatory filing on Thursday, the company said it had secured a permit to offer securities for sale from the Securities and Exchange Commission (SEC).
The offering comprises P20 billion worth of retail bonds, with an oversubscription option of up to P10 billion. The offer period runs from June 23 to July 4.
The P30-billion offering is the first tranche of AboitizPower’s proposed P100-billion fixed-rate retail bond program. The first tranche is expected to be issued on July 4 and will be listed with the Philippine Dealing & Exchange Corp.
“The remaining balance of Bonds shall be lodged under AboitizPower’s shelf registration program and may be issued in future tranches,” the company said.
AboitizPower engaged BDO Capital & Investment Corp., First Metro Investment Corp., and Union Bank of the Philippines as joint issue managers for the first tranche.
BDO Capital, FMIC, UnionBank, China Bank Capital Corp., Land Bank of the Philippines, PNB Capital and Investment Corp., and Security Bank Capital Investment Corp. were also tapped as joint lead underwriters and joint bookrunners.
BDO Unibank, Inc. – Trust and Investments Group was designated as the trustee, while Philippine Depository & Trust Corp. serves as the registrar.
The first tranche previously received a PRS Aaa credit rating with a stable outlook from the Philippine Rating Services Corp. (PhilRatings).
PRS Aaa is the highest rating assigned by PhilRatings, indicating minimal credit risk. A stable outlook means the rating is likely to be maintained over the next 12 months.
PhilRatings cited AboitizPower’s diversified portfolio with strong growth prospects, experienced management team, healthy liquidity and coverage ratios, and sound capital structure.
AboitizPower is the Aboitiz Group’s investment arm for power generation, distribution, and retail electricity, as well as related energy solutions.
The company is targeting to expand its total attributable net sellable capacity to 9,200 megawatts by 2030, with a 50:50 balance between renewable and thermal energy sources.
At the local bourse on Thursday, AboitizPower shares rose by 1.01% to close at P39.90 apiece. — Sheldeen Joy Talavera
