THE board of directors of Aboitiz Power Corp. has cleared the issuance of up to P12 billion worth of fixed-rate retail bonds, which the company plans to offer in the fourth quarter and listed on the bond exchange.

“Subject to market conditions, the second tranche bonds [are] expected to be offered to the general public in the fourth quarter of 2021,” the firm said in a regulatory filing on Monday, adding that these will be listed with the Philippine Dealing & Exchange Corp.

AboitizPower said that the securities form the second tranche of its P30-billion bond issuance under its shelf-registration program.

Earnings from the bonds will refinance activities, support general corporate purposes or fund future renewable energy projects.

AboitizPower said its board of directors assigned the management to finalize the issue amount, interest rate, offer price, tenors, parties involved, and other terms of the bonds.

Last week, the company announced that it had fully redeemed and paid P3.4 billion of its 12-year 2014 “Series B” Bonds earlier than their maturity, which is in 2026.

AboitizPower earlier said that it was investing P190 billion to develop 3,700 megawatts of new renewable projects by 2030 to scale up its “Cleanergy” brand, which it aims to have a bigger share or 50% of its power generation portfolio in a decade’s time.

Cleanergy is the firm’s clean and renewable energy portfolio.

AboitizPower’s second-quarter attributable net income to its parent grew by more than two-fold to P3.96 billion versus its year-on-year figure of P1.68 billion.

The company is the listed holding firm for the Aboitiz group’s investments in power generation, distribution, retail electricity and other related services. It also holds ownership interests in nine distribution utilities, which provide power to franchise areas covering 18 cities and municipalities and five economic zones across the country.

AboitizPower shares jumped 2.45% or 80 centavos to finish at P33.45 apiece on Monday. — Angelica Y. Yang