Aboitiz Power to raise P12B in bonds

October 1, 2021

Aboitiz Power Corporation seeks approval from the Securities and Exchange Commission to issue the second tranche of its P30-billion fixed-rate retail bonds to bankroll expansion.

In a regulatory filing on Thursday, AboitizPower said it plans to issue a second tranche, which has an aggregate principal amount of up to P12 billion, including oversubscription, within the fourth quarter.

“The proceeds of the bonds will be used to refinance the 2020 Series E Bonds maturing in 2022, partially fund the equity contributions for the construction of the 74-MW (megawatts) solar power plant in Pangasinan province, general corporate purposes, and other future renewable projects,” AboitizPower said.

The company appointed BDO Capital & Investment Corporation, China Bank Capital Corporation, First Metro Investment Corporation and Security Bank Capital Investment Corporation as Joint Issue Managers, Joint Lead Underwriters, Joint Bookrunners; and BDO Unibank, Inc. — Trust and Investments Group as the Trustee.

Aboitiz Equity Ventures Inc. (AEV) recently sold 25 percent of AboitizPower to Jera Co. Inc. — Japan’s largest power generation company — for $1.463 billion or approximately P73.15 billion.

The AEV also agreed to sell an additional 1.99 percent stake in AboitizPower, bringing Jera’s total post-transaction stake to 27.0 percent.

Once the transaction passes necessary customary requirements, AEV will own a controlling stake of 52 percent in AboitizPower.