Aboitiz Power Corporation to Raise Up to Php100 Billion via SEC-Approved Retail Bonds Under Shelf Registration

Aboitiz Power Corporation (AboitizPower) has filed a registration statement with the Securities and Exchange Commission (SEC) for a peso-denominated fixed-rate retail bond program worth up to Php100 billion under a shelf registration system. This approval will allow AboitizPower to issue the bonds in multiple tranches over time, based on market conditions and financial requirements.

For the first tranche, AboitizPower plans to issue Php20 billion in retail bonds, with an oversubscription option of Php10 billion, bringing the total potential issuance to Php30 billion. Subject to regulatory approvals and favorable market conditions, the first tranche is expected to be offered to the public in Q2 2025 and subsequently listed on the Philippine Dealing and Exchange Corporation (PDEx) by Q3 2025.

A shelf registration allows companies to pre-register a large amount of securities (such as bonds) with the SEC, enabling them to issue the bonds in separate tranches over time rather than going through separate approval processes for each offering. This setup provides greater flexibility in timing the issuances, ensuring that AboitizPower can enter the market at the most favorable conditions while reducing administrative costs and enhancing efficiency in capital raising.

By utilizing the shelf registration program, AboitizPower can strategically issue bonds as needed, ensuring that it secures funding at stable interest rates and effectively manages its capital structure and liquidity.

The proceeds from the first tranche of the retail bonds will be allocated to refinancing corporate debts and supporting general corporate purposes. This strategy aligns with AboitizPower’s ongoing efforts to optimize its financial position, maintain operational resilience, and drive business expansion.

The company, in a disclosure to the Philippine Stock Exchange, said its Board of Directors has delegated to company management the authority to determine the final issue amount, interest rates, offer price, tenors, and other terms and conditions of the bonds. Additionally, management will oversee the selection of underwriters, bookrunners, selling agents, and other parties involved in the offering to ensure a successful issuance.

What are your thoughts on AboitizPower’s Php100 billion retail bond program? Do you see this as a strong move to optimize debt management and finance growth initiatives? Share your insights in the comments below and follow Power Philippines for the latest updates on financial markets and corporate investments!