AboitizPower unit secures financing from BDO, BPI

By VG Cabuag – January 13, 2021
from Business Mirror

Aboitiz Power Corp. on Tuesday said its unit, SN Aboitiz Power-Benguet Inc., has obtained P18 billion in financing from two of the country’s largest banks.

In its disclosure, the company said it secured the amount through the issuance of unsecured notes facility from BDO Unibank Inc. and Bank of the Philippine Islands.

“SN Aboitiz Power-Benguet Inc. used the proceeds to prepay in full its US dollar- and peso-denominated senior project loans to International Finance Corp., Nordic Investment Bank, BDO and BPI,” the company said.

The remaining proceeds after prepayment will be used to fund the general corporate requirements of SN Aboitiz Power-Benguet Inc.

The said company, a joint venture between Aboitiz Power and SN Power AS of Norway, acquired the then 175 megawatt Ambuklao-Binga Hydroelectric Power Plant (HEPP) for $325 million through a competitive bidding conducted by the Power Sector Assets and Liabilities Management Corp. in November 2007.

In September 2015, the company refinanced the peso loan component of its 2008 credit facility in the amount of $375 million obtained from a consortium of domestic and international lenders.

The proceeds of the 2015 refinancing was used to partially fund the rehabilitation of the 105 MW Ambuklao HEPP and the refurbishment of the 140 MW Binga HEPP, repay existing loans or advances, and for other general corporate purposes.

Last month, AboitizPower said it will issue within the first quarter the first tranche of its P30-billion securities under the shelf registration program of the Securities and Exchange Commission.

The amount will be issued in tranches, starting with P4 billion. The company intends to list the first tranche with the Philippine Dealing and Exchange Corporation.

“The Board of Directors of the Company approved the issuance of the first tranche of the Retail Bonds under the shelf registration statement, consisting of up to P4 billion, with oversubscription option of up to P4 billion.

This first tranche is expected to be offered to the general public, subject to market conditions, during the first quarter of 2021,” it said.