The Securities and Exchange Commission (SEC) has approved Aboitiz Power Corporation’s shelf registration for up to PHP100 billion in fixed-rate bonds. This gives the company flexibility to raise capital in tranches over time.

In a meeting held on June 10, the Commission En Banc resolved to render effective Aboitiz Power’s registration statement, which is subject to the company’s completion of remaining regulatory requirements.

For the first tranche of the offering, Aboitiz Power will offer up to PHP20 billion in fixed-rate bonds, with an oversubscription option of up to PHP10 billion. If the oversubscription is fully exercised, the company is expected to raise up to PHP 29.64 billion in net proceeds.

According to the disclosure, proceeds from the bond offering will be used to refinance and redeem existing debt. This is part of Aboitiz Power’s wider strategy to manage its liabilities and strengthen its financial position.

The public offer period is scheduled to start on June 23 and end on June 27. The bonds are set to be listed on the Philippine Dealing and Exchange Corporation (PDEx) on July 7, based on the timeline submitted by the company.

To facilitate the issuance, Aboitiz Power has tapped several financial institutions as joint issue managers and joint lead underwriters. These include BDO Capital & Investment Corporation, First Metro Investment Corporation, Union Bank of the Philippines, China Bank Capital Corporation, Land Bank of the Philippines, PNB Capital and Investment Corporation, and Security Bank Capital Investment Corporation.

This shelf registration allows Aboitiz Power to access the capital markets efficiently, giving the company the ability to offer securities in one or more tranches within a three-year period.

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