Aboitiz Power Corp. set the interest rate for the P3-billion 10-year bond offering at 5.3367 percent per annum.
The final prospectus filed by the company with the Securities and Exchange Commission showed the offer period would be from June 20 to June 23, while issue and listing would be on July 3.
The P3-billion bonds due 2027 represent the first tranche of the P30-billion bond shelf registration of Aboitiz Power which was approved by the SEC.
The series A bond offering will be issued in scripless form in minimum denominations of P50,000 each, and in multiples of P10,000 thereafter.
Aboitiz Power has the option, but not the obligation, to redeem in whole and not in part, the outstanding bonds on any interest payment date on the 7th, 8th and 9th year from the issue date.
Net proceeds from the offer will be used by the company to finance equity infusions into GN Power Dinginin.
Aboitiz Power said it would infuse equity to GNPD, through Therma Dinginin B.V. In return, GNPD will issue partnership certificates to Therma Dinginin B.V., reflecting such additional equity.
The partnership interest of Therma Dinginin B.V. in GNPD will remain at 50 percent, as the other partners in GNPD shall infuse additional equity, proportionate to maintain each partner’s equity interest.
The company tapped BPI Capital Corp and the sole issue manager and underwriter for the fund raising activity.
Aboitiz Power plans to build a 4,000-megawatt net sellable capacity by 2020, which includes several projects such as the Pagbilao 3 expansion to be completed by the end of the year, Therma Visayas coal plant project by the first quarter 2018, Manolo Fortich hydro by the end of the year and the GN Power Dinginin power plant by 2019.