Aboitiz Power readies P9.55-b bond offering

By Jenniffer B. Austria – June 12, 2020 at 09:20 pm
from manilastandard.net

Aboitiz Power Corp. is pushing through with its planned P9.55-billion bond offering this year.

The company said in a latest filing with the Securities and Exchange Commission it would issue up to P6 billion in fixed-rate retail bonds, with an oversubscription option for another P3.55 billion.

The bonds will be issued in two series with tenors of two and five years, shorter than the original target of five and seven years.

The bonds will be the fourth issuance of Aboitiz Power in relation to its three-year shelf registration of up to P30 billion.

It said the net proceeds would be used primarily for the company’s equity contributions through AA Thermal Inc.  and Therma Power Inc. to GNPower Dinginin Ltd. Co. in relation to the construction of its 2×668 MW supercritical coal-fired power plant in Mariveles, Bataan. Proceeds would also support general corporate purposes.

The bonds will be listed on the Philippine Dealing & Exchange Corp. The company tapped BDO Capital and Investments Corp., First Metro Investments Corp. and ChinaBank Capital as joint issue managers and underwriters for the offering.

The P9.55-billion bond offering was rated PRS Aaa, with a stable outlook by Philippine Ratings Services Corp. Obligations rated PRS Aaa are of the highest quality with minimal credit risk which means that the obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
PRS Aaa is the highest rating assigned by PhilRatings.

Other companies are also looking to issue fixed-rate bonds amid current coronavirus pandemic. Ayala Land earlier reported plans to issue up to P10-billion bonds due 2022 while Robinsons Land Corp. is also looking to raise as much as P20-billion bonds due 2023 and 2025.