ABOITIZ POWER CORP. (AboitizPower) is seeking the approval of the Securities and Exchange Commission for the issuance of the fourth tranche of its P30-billion fixed-rate retail bonds registered in 2017 under the shelf registration program of the corporate regulator.
The energy firm told the stock exchange on Tuesday that it has filed for an application to issue the P9.55-billion bonds, which it expects to roll out by the second or third quarter of the year, in one or two series.
AboitizPower, the energy arm of Aboitiz Equity Ventures, Inc., plans to use the proceeds from the bond offering, set to be listed with Philippine Dealing and Exchange Corp., to reimburse equity infusions and fund succeeding infusions into AA Thermal, Inc.
AA Thermal was the thermal platform of Ayala-led AC Energy, Inc. in the Philippines which shares the Aboitiz power unit acquired in 2019. It has a 49% voting stake and a 60% economic interest in the company.
Further, it also eyes to invest in Therma Power, Inc. for the construction of two units of 668-megawatt super critical coal-fired power plant of GNPower Dinginin Ltd. Co., which AA Thermal also has an interest in.
AboitizPower engaged BDO Capital & Investment Corp. and First Metro Investment Corp. as joint issue managers, as well as joint lead underwriters, along with China Bank Capital Corp. It also tapped the BDO Unibank, Inc. Trust & Investments Group as its trustee.
The company issued the first tranche of the retail bonds worth P3 billion on July 3, 2017. The second tranche was out on Oct. 25, 2018, amounting to P10.2 billion, and the third, which is worth P7.25 billion, on Oct. 14, 2019.
On Tuesday, shares in AboitizPower grew by 9.36% to close at P26.30 apiece. — Adam J. Ang