The Securities and Exchange Commission allowed Aboitiz Power Corp. to issue the third tranche of its P30 billion worth of peso-denominated, fixed-rate retail bonds amounting to P10 billion.
Aboitiz Power disclosed to the Philippine Stock Exchange on Monday it received the certificate of permit to offer securities for sale on September 27 from the SEC.
The bonds were registered under the shelf registration program of SEC on June 19, 2017.
The third tranche bonds, with a principal amount of P7 billion and an oversubscription option of up to P5 billion, will be issued on October 14. The offering period will start on September 30 and end on October 4.
Aboitiz Power engaged BDO Capital & Investment Corp. and First Metro Investment Corp. as joint issue managers, and BDO Capital & Investment Corp., First Metro Investment Corp., China Bank Capital Corp., SB Capital & Investment Corp. and PNB Capital & Investment Corp. as joint bookrunners and joint lead underwriter of the bonds.
BDO Unibank-Trust and Investments Group has been appointed as trustee, while Philippine Depository & Trust Corp. will act as the registrar of the bonds.
The bonds received an issue credit rating of “PRS Aaa” with a stable outlook from the Philippine Ratings Services Corp.on August 30.
Aboitiz Power plans to list the bonds with Philippine Dealing & Exchange Corporation.
“Aboitiz Power will use the proceeds of the Third Tranche Bonds for (i) repayment of its short-term loan obligations and (ii) general corporate purposes,” the company said in an earlier disclosure.
The company issued the first tranche worth P3 billion on July 3, 2017 and the second tranche in the amount of P10.2 billion on October 25, 2018.
Aboitiz Power’s second tranche bonds received strong market response when they were issued last year.
“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,” Aboitiz Power chief finance officer Liza Montelibano said earlier.
