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Aboitiz holding firm plans to offer dollar-denominated notes

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ABOITIZ Equity Ventures, Inc. (AEV) is planning to issue dollar-denominated senior unsecured notes “subject to market conditions,” the holding said on Friday as one of its units appointed financial institutions to arrange events for investors on the proposed offering.

“The Notes, if issued, are expected to be unconditionally and irrevocably guaranteed by AEV and unrated,” it told the stock exchange.

It said the notes offering are to be classified as “Regulation S,“ referring to rules allowing safe harbor from the registration requirements for offshore offers and sales of securities. It has yet to disclose the use of the proceeds from the planned offering.

AEV said its wholly owned subsidiary AEV International Pte. Ltd. had appointed The Hongkong and Shanghai Banking Corp. Ltd. and Standard Chartered Bank as joint global coordinators.

DBS Bank Ltd., HSBC, Mizuho Securities (Singapore) Pte. Ltd., MUFG Securities Asia (Singapore) Ltd., and Standard Chartered Bank were also appointed as joint lead managers and joint bookrunners.

They will arrange a series of fixed income investor meetings and conference calls in Hong Kong, Singapore, and London starting on Jan. 6, 2020.

On Friday, shares in AEV rose by 0.19% to P52.35 each.

Separately, AEV’s energy arm Aboitiz Power Corp. said on Friday that its Cleanergy brand now has 32 customers in Luzon and the Visayas for the supply of 203 megawatts (MW) of renewable energy.

In a statement, it said the customers include multinational companies that are choosing renewables for their energy needs as well as electric cooperatives that are shifting to a more balanced energy mix.

“It is our commitment to continue providing ample, reliable, and reasonably-produced power to our customers by maximizing renewable energy for as long as feasible, while at the same time using the reliability and cost-efficiency of fossil-fired power plants,” AboitizPower President and Chief Executive Officer Emmanuel V. Rubio said.

Through Cleanergy, AboitizPower and its partners generate a total of 1,242 MW, which account for about 27% of the company’s net sellable capacity. Its renewable energy portfolio includes solar, geothermal, run-of-river hydro, and large hydropower facilities.

Among its customers are green office developer and operator NEO Property Management, Inc., which renewed its partnership with AboitizPower in January 2019 after first signing up in 2013.

NEO signed up for the supply of 13.5 MW to its facilities in Bonifacio Global City, Taguig. The company is a bulk electricity user or a “contestable” customer that can choose its own electricity supplier under the country’s rules on retail competition and open access (RCOA).

Similarly, food and beverage company Nestlé Philippines switched to Cleanergy in 2017 to supply its manufacturing facility in Lipa, Batangas. Other Nestlé facilities have since switched, including factories in Cabuyao, Laguna and Tanauan, Batangas, as well as its corporate administrative office in Makati City. Their total power demand has reached 17 MW.

Other Cleanergy customers include Shangri-La’s Mactan Resort & Spa in Cebu, Shangri-La at The Fort, Shangri-La’s Boracay Resort & Spa, and Hotel Jen Manila by Shangri-La, for a total power supply of 10.4 MW.

AboitizPower also supplies a total of 15.7-MW of clean and renewable energy to Asian Development Bank, Draka Philippines, Eton Properties, and Unionbank.

Electric cooperatives that signed up for Cleanergy are Siargao Electric Cooperative, Nueva Ecija II Electric Cooperative, and Batangas II Electric Cooperative. Other customers include power distribution utilities in Zamboanga del Sur, Zamboanga del Norte, Bukidnon, Misamis Occidental, and Iloilo City. — Victor V. Saulon





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