Aboitiz unit seeks approval of SEC for P10-B bond float
BY LENIE LECTURA – JANUARY 11, 2022
from Business Mirror
Aboitiz Power Corp. is seeking the green light of the Securities and Exchange Commission (SEC) for the issuance of up to P10 billion in fixed-rate retail bonds.
The amount represents the third tranche of the P30 billion fixed-rate retail bonds registered last March 1, 2021, under the shelf registration program of the commission.
“The Third Tranche Bonds, with an aggregate principal amount of P10 billion, including oversubscription, is expected to be issued on one or two series in the first quarter of 2022,” it said.
The bonds will be listed on the Philippine Dealing and Exchange Corp.
Proceeds would be utilized to raise capital to refinance AboitizPower’s previously issued bonds, pay for the construction of renewable projects, and other general purposes.
The power firm appointed BDO Capital & Investment Corp., China Bank Capital Corp., and First Metro Securities Brokerage Corp. as joint lead underwriters and joint bookrunners.
In November, AboitizPower reported that it posted a net income of P15.7 billion in January to September, P5.6 billion of which was registered in the third quarter of 2021.
The power firm’s nine-month net income rose by 124 percent compared to the same period a year ago. Third-quarter numbers were 70 percent higher at P5.6 billion versus a year ago.
The power firm attributed the strong performance to commissioning revenue from GNPD Unit 1, higher water inflow from its hydroplants; higher availability of the Thermal Luzon Inc., Therma South Inc. and Therma Visayas Inc. facilities; and higher WESM dispatch.
Also, the power firm was able to claim damages for the delay in the construction of GNPD Unit 1 and received final payment for business interruption claims resulting from GNPower Mariveles Center Ltd. Co. and AP Renewables Inc. outages in previous years. Moreover, electricity demand increased during the period after the government relaxed quarantine restrictions.
The power firm has lined up a number of new power projects, which are already in various stages of development. In addition to these new projects, the company’s baseload plants have been performing well above benchmark targets for availability and reliability.
Its goal is to end with 9,200megawatts (MW) of total attributable net sellable capacity in the next decade. Of which, 4,600MW will come from various renewable energy sources.
