Aboitiz Power Corp. plans to issue P3 billion worth of bonds due 2023 in June to finance equity infusion in GNPower Dinginin Ltd. Co.
Aboitiz Power said in a filing with the Securities and Exchange Commission the P3-billion bond offering would be a part of the company’s P30-billion bond shelf registration.
Offer period for the bonds will be on June 9 to 16, while issue date was tentatively set on June 21.
The bonds will be listed with the Philippine Dealing & Exchange Corp.
Aboitiz Power tapped BPI Capital Corp. as the issue manager and underwriter and BPI Asset Management and Trust Corp. as the trustee.
Aboitiz Power said net proceeds from the offering would finance equity infusions into GNPD which was developing and constructing two units of 1,336-megawatt supercritical coal-fired power plant in Mariveles, Bataan.
The proposed power plant project will be constructed in two phases.
GNPD successfully achieved its financial closing and started the construction of the first phase involving the first 668-MW unit with target delivery in 2018.
GNPD already signed power purchase and sale agreements with 27 highly-rated distribution utilities and said it intended to register with the Energy Regulation Commission as a retail electricity supplier to enable it to enter into forward contract with prospective contestable customers.
Aboitiz Power, through subsidiary Therma Power Inc., acquired GNPD in December by purchasing the partnership interests held by affiliated investment funds of The Blackstone Group, L.P in World Power Holdings, L.P. and Sithe Global Power, L.P.
This resulted in TPI’s acquisition of 40-percent beneficial ownership interest in GNPD.
Aboitiz Power earlier reported a 14-percent growth in 2016 income to P20 billion from P17.6 billion in 2015, on strong performance of its generation business.
Core net income also rose 12 percent to P20.6 billion from P18.4 billion in 2015.