Aboitiz Power Corp. (AboitizPower) will be issuing P15 billion worth of fixed-rate bonds by the fourth quarter of this year to refinance existing debt.
In a disclosure to the stock exchange on Tuesday, Aug. 28, AboitizPower said the bond issuance will consist of a base size of P10 billion, with an oversubscription option of up to P5 billion, with tenors of 5.25 years and 10 years.
AboitizPower looks to use the proceeds of the issuance to refinance the term loan of subsidiary Therma Power, Inc., previously used to partially fund the acquisition of GNPower Mariveles Coal Plant Ltd. Co. in December 2016. Part of the proceeds will also be used to repay short-term loan obligations and for general corporate purposes.
The listed firm appointed BDO Capital Corp. as the offering’s issue manager and, together with BPI Capital Corp. and United Coconut Planters Bank, as the joint lead underwriters. BDO Unibank, Inc. Trust & Investments Group will serve as the trustee.
The bonds will be listed at the Philippine Dealing & Exchange Corp.
Incorporated in 1998, AboitizPower has core interests in hydroelectric, geothermal, solar, coal-fired, and oil-fired power plant with a net sellable capacity of 3,175 megawatts (MW) as of the first half of 2018. The company also has eight distribution utilities under its portfolio, servicing 254 customers with a contracted capacity of 927 MW.
The company reported a net income attributable to the parent of P9.12 billion in the first six months of 2018, six percent lower than the P9.72 billion it posted in the same period a year ago. Gross revenues went up by 15% to P65 billion during the same period.
Shares in AboitizPower slipped 50 centavos or 1.35% to close at P36.50 each at the stock exchange on Wednesday. — Arra B. Francia