AboitizPower starts selling first tranche bonds


Aboitiz Power Corporation has begun selling the first tranche of its fixed-rate bonds after it received the Order of Registration and Certificate of Permit to Offer Securities for Sale from the Securities and Exchange Commission on Monday.

In a disclosure to the Philippine Stock Exchange, the company said that public offer of the bonds with interest rates of 3.8224% per annum begins today and will end on March 8.

The first tranche bonds will then be issued on March 16 and are to mature five years from then.

Interest will be paid quarterly on the 16th of March, June, September, and December from June 16, 2021 until the maturity date of March 16, 2026.

The bonds will be issued in scripless form in minimum denominations of ₱50,0000 each, and in multiples of ₱10,000 afterwards.

The first tranche bonds have received the highest possible rating of “PRS Aaa” from the Philippine Rating Services Corporation. The company intends to list them with the Philippine Dealing & Exchange Corporation.

AboitizPower aims to issue Php4 billion worth of bonds. Assuming that it fully exercises the oversubscription option of up to another Php4 billion, the country’s largest power generator expects to earn Php7.9 billion from the first tranche.

Overall, the company aims to offer bonds of up to Php30 billion.

Remaining tranches of debt securities under AboitizPower’s shelf registration may be issued from time to time over the next three years, subject to market conditions and the company’s funding requirements.

AboitizPower has appointed BDO Capital & Investment Corporation, BPI Capital Corporation, China Bank Capital Corporation and First Metro Investment Corporation as joint issue managers, joint lead underwriters, and joint Bookrunners; and BDO Unibank, Inc. – Trust and Investments Group as trustee. The Philippine Depository & Trust Corp. will act as the registrar and paying agent.