AboitizPower files application for Php12B bond offer with SEC

AboitizPower IPO

Aboitiz Power Corporation said it has filed its application with the Securities and Exchange Commission (SEC) for the issuance of Php12 billion in fixed-rate retail bonds to partly finance its 74-megawatt Cayanga-Bugallon solar power plant project in Pangasinan among other purposes.

In a disclosure to the Philippine Stock Exchange, AboitizPower said that the bonds will be used to refinance the 2020 Series E Bonds maturing in 2022, as well as general corporate purposes, and other future renewable projects.

The bonds, including oversubscription, would be issued in one or two series in the fourth quarter.

The Php12-billion bond offer serves as the second tranche of the company’s Php30-billion fixed-rate bond program, which it registered with the SEC back in March. AboitizPower intends to list the bonds with the Philippine Dealing and Exchange Corporation (PDEX).

On Monday, it was announced that Japanese firm JERA is buying 25% of AboitizPower to expand its clean energy ventures in the Philippines. Before that, AboitizPower — the country’s largest power generatorsaid it would be investing around Php190 billion for renewable energy projects until 2030.

In another development, the SEC approved Petron’s Php50-billion fixed-rate bond program last week. The peso-denominated bonds would be offered in at least one tranche within three years.

Petron, the country’s largest oil firm, expects to raise Php17.78 billion from the first tranche. The proceeds will be used for the redemption of its Series A bonds, the partial financing of its power plant project, and for the payment of existing debt.

The oil giant’s first tranche bond offer began on Monday and will run until October 5 in time for their listing in the PDEX on October 12.