The board of Aboitiz Power Corp. on Thursday approved the issuance of fixed-rate retail bonds amounting to P27 billion out of the P30 billion worth of debt instruments registered in 2017 with the Securities Exchange Commission.
“The bonds will be issued in one or more tranches depending on market conditions and are expected to be offered to the general public in the third or fourth quarter of 2018,” Aboitiz Power said.
Aboitiz Power successfully listed the first tranche of its P30-billion shelf-registered securities consisting of P3 billion in Series A Fixed Rate Bonds due 2027 in the secondary market of Philippine Dealing & Exchange Corp. in July last year. The company plans to list the new bonds with the PDEx.
Aboitiz Power will use the proceeds of the bonds to finance, potential acquisitions, future investments, refinance existing debt, and other general corporate requirements subject to the discretion of management.
Aboitiz Power has earmarked a capital expenditure budget of P62 billion this year, with the bulk to be spent on the ongoing construction of the 1,336-megawatt coal-fired power plant in Diningin, Mariveles.
The company is also looking at acquisition opportunities locally and internationally to expand its generation portfolio.
Part of the budget will be spent for the Therma Visayas coal plant (340 MW), Pagbilao unit 3 (420 MW), the capital expenditure of its distribution utility unit and other purposes.
The company is searching for opportunities in the overseas power markets such as Myanmar and Indonesia, while at the same time evaluating local investments.
Aboitiz Power’s capacity sold 3,215 MW in the first quarter, up 22 percent from 2,630 MW year-on-year, driven by the new capacity of Pagbilao 3 and an increase in the number of contracts.
Aboitiz Power is the holding company of the Aboitiz Group’s investments in power generation, distribution, and retail electricity services.
The company is one of the largest power producers in the Philippines with a balanced portfolio of assets across the country.