AboitizPower gets highest ratings for 3rd tranche bonds

AboitizPower edited

The third tranche of Aboitiz Power Corporation’s bond offer has received the highest credit rating from the Philippine Rating Services Corporation (PhilRatings).

PhilRatings gave a “PRS Aaa” rating with a Stable Outlook to the bonds worth Php10 billion, of which Php7 billion accounts for the issue size and Php3 billion for oversubscription. 

The rating was issued given AboitizPower’s “diversified portfolio with growth prospects, experienced management team, sustained financial recovery, and sufficient liquidity levels.” PhilRatings also considered the power industry’s stability amid the adverse impact of the COVID-19 pandemic, given that electricity is an essential need. 

Obligations that are rated “PRS Aaa” are those of the highest quality with minimal credit risk. Meaning the company has the capacity to meet its commitment to the obligations. Meanwhile, a “Stable Outlook” means that the rating is likely to be maintained or to remain unchanged in the next 12 months.

The P10 billion bond issuance is the third installment of the P30 billion fixed-retail bonds that AboitizPower registered with the Security and Exchange Commission (SEC) last year. Last week, it sought clearance from the SEC to offer the third tranche, of which the proceeds would be used to fund the company’s renewable energy (RE) projects, among others.

AboitizPower is the country’s largest power generator, based on data from the Department of Energy. Last year, it announced plans to invest Php190 billion for RE in a bid to strike a 50:50 balance between its renewables and thermal portfolio by 2030 as a support for the global movement for clean energy. 

Japanese RE firm JERA also bought a fourth of AboitizPower in 2021. Under the terms, both companies would partner to develop RE and liquefied natural gas projects throughout the Philippines.