AboitizPower to sell P9.55-B retail bonds in Q2

By Jordeene B. Lagare – January 28, 2020
from The Manila Times

LISTED AboitizPower Corp. on Tuesday unveiled its plans to sell up to P9.55 billion worth of fixed-rate bonds in the second quarter.

In a disclosure, the power arm of the Aboitiz Group said the board approved its planned issuance of fixed-rate retail bonds representing the fourth tranche of its P30-billion debt securities program approved by the Securities and Exchange Commission in 2017.

Subject to market conditions, AboitizPower is expected to offer the bonds in the second quarter and shall be listed on the Philippine Dealing and Exchange Corp.

Proceeds will be used to finance planned acquisitions, future investments and other corporate requirements.

“The Board of Directors delegated to management the final determination of the issue amount, interest rate, offer price, tenors, and other terms and conditions of the bonds including the parties that will manage or otherwise be involved in the offer,” AboitizPower said.

The firm issued the first tranche, worth P3 billion, on July 3, 2017; the second, worth P10.2 billion, on Oct. 25, 2018; and the third, amounting to P7.25 billion, last October 14.

During the listing ceremony last October, Liza Luv Montelibano, AboitizPower senior vice president and chief financial officer, said even though the third offering was earmarked to refinance and repay some of the firm’s existing loan obligations, this was part of their larger goal of generating 33 terawatt-hours of energy by 2025.

The latest issuance bagged last year the “PRS Aaa” credit score from the Philippine Ratings Services Corp., meaning AboitizPower’s capacity to meet its financial commitment was “extremely strong.”

AboitizPower shares dropped by 55 centavos or 1.66 percent to end at P32.65 each on Tuesday.