The board of Aboitiz Power Corp. said Tuesday it approved the issuance of up to P16.8 billion worth of fixed-rate retail bonds by the second half of the year.
“The board of directors of Aboitiz Power approved the issuance of up to P6.8 billion fixed-rate retail bonds [the third tranche bonds] out of the P30-billion bonds registered in 2017 under the shelf-registration program of the Securities Exchange Commission,” the company said.
Aboitiz Power issued the first tranche out of the shelf-registered bonds on July 3, 2017 worth P3 billion and the second tranche on Oct. 25, 2018 amounting to P10.2 billion.
Aboitiz Power said the third tranche bonds would be offered to the general public in the second half “subject to market conditions” and would be listed with the Philippine Dealing and Exchange Corp.
“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,” it said.
Aboitiz Power said it would use the proceeds from the bond sale “to finance planned acquisitions, future investments and/or other corporate requirements.”
The company acquired a 49-percent voting interest and 60-percent economic stake in AA Thermal Inc., Ayala Group’s thermal or coal asset platform in the country, for $579.2 million (P31.4 billion) in September last year.
Aboitiz Power’s second tranche of bonds received strong market response last year. “Despite market volatility, our base offer is fully subscribed. While the purpose of this second offering is to refinance and repay some of our existing loan obligations, it is part of a larger goal of providing the country 4,000 megawatts of installed capacity by 2020,” Aboitiz Power chief finance officer Liza Montelibano said earlier.
“This exercise enables us to further our brand promise of advancing business and communities. By raising funds for Aboitiz Power, we are able to give our investors a chance to be part of a growth story they are in,” Montelibano said.