AboitizPower to offer P30B of retail bonds following SEC go-signal

AboitizPower IPO

After receiving a letter of approval from the Security and Exchange Commission (SEC) last week, AboitizPower Corp. has set out an offering period of its P30 billion worth of retail bonds, starting with P2 billion plus a P1 billion oversubscription.

The remaining balance shall be lodged under the shelf-registration program of the SEC to be issued in future tranches.

The public offer will commence on June 20, Tuesday will end on June 23, Friday.

The company also said the bonds are to be listed with the Philippine Dealing & Exchange Corp. (PDEx) and will be issued on July 3, 2017.

BPI Capital Corp. will attend to AboitizPower’s first tranche as its issue manager and underwriter while BPI Asset Management and Trust Corp. will be its trustee and the Philippine Depository & Trust Corp. (PDTC) is the registrar of the bonds.

The Philippine Rating Services Corp. gave the bonds the highest possible rating of “PRS Aaa”, in which the proceeds of the offer bonds will be subsidized for corporate projects, including potential acquisitions, future investments and other general company requirements.

Aboitiz Equity Ventures, the energy company’s umbrella firm, allocated 75 percent of its total capital expenditure this year—which amounts to P59 billion—for its power business in support to achieve 4,000 megawatts (MW) of net sellable capacity by 2020.

The power firm currently recorded a net sellable capacity of 3,350 MW.

The company is also expected to finish five major power projects with a capacity of 828.3 MW including the 69-MW Manolo Fortich hydropower plant in Bukidnon and the 8.5-MW Maris Canal hydro project in Isabela through its subsidiary SN AboitizPower.

The 340-MW Therma Visayas baseload power plant in Cebu, the TeaM Energy Corp.-partnered 400-MW Pagbilao power plant expansion and the 2×300 MW coal-fired power plant in Zambales under Redondo Peninsula Energy Inc. are all undergoing developments in line with AboitizPower’s strategy to have a wide and diverse portfolio of generating assets.