Aboitiz to raise P9.55 billion for thermal power expansion

MANILA, Philippines — Aboitiz’s power unit is looking to tap individual retail investors to raise up to P9.55 billion and fund new investments into its thermal power business.

In a disclosure to the local bourse on Monday, Aboitiz Power Corp. said corporate regulators approved the company’s plan to offer P6 billion fixed-rate retail bonds, with a space to hike it by another P3.55 billion should there be good investor demand for the issuance.

The offer will run from June 19 to 26, with bonds expected to be settled by July 6. 

The issuance is the culmination of the offer process that started in April when Aboitiz, amid a tumultuous equity market at the start of the lockdown, approached the Securities and Exchange Commission (SEC) to exhaust the remaining the balance of its P30-billion bond shelf secured July 2017. 

The amount of the bond shelf corresponds to the value a company may borrow by floating securities. The latest issuance would mark the fourth tranche of fund raising after the P3 billion raised in July 2017, P10.2 billion in October 2018 and P7.25 billion borrowed in October 2019.

“The proceeds of the bonds will be used to reimburse equity infusions into AA Thermal Inc. and to fund succeeding infusions into AA Thermal…,” Aboitiz said in a March 31 disclosure. Last year, Aboitiz acquired 49% voting stake on AA Thermal, the thermal platform of AC Energy Inc owned by Ayala Corp.

The money would also be funneled into Therma Power Inc. to help in financing “the construction of the 2x668 MW super critical coal-fired power plant of GN Power Dinginin Ltd. Co.,” the company said.

For the latest retail bond float, Aboitiz Power hired BDO Capital & Investment Corp., China Bank Capital Corp. and First Metro Investment Corp. as joint issue managers and joint lead underwriters.

Shares in Aboitiz Power closed up 2.16% to P28.40 apiece on Monday.