AboitizPower raises P10 billion from bonds

MANILA, Philippines — Aboitiz Power Corp. has raised P10 billion from the issuance of fixed-rate retail bonds.

In a disclosure to the Philippine Stock Exchange  yesterday,  AboitizPower said it received  approval from the Philippine Dealing and Exchange Corp. to list the bonds.

“The PDEx approval paves the way for the secondary market trading of the Series D Bonds, with a fixed interest rate of 5.3066 percent per annum maturing in 2027, and the Series E bonds with a fixed interest rate of 5.7388 percent per annum maturing in 2029,” the company said.

The  bonds represent the third tranche of the company’s P30-billion debt securities program registered and approved by the Securities and Exchange Commission  on March 1, 2021.

For the bond offer, AboitizPower appointed BDO Capital & Investment Corp., China Bank Capital Corp. and First Metro Securities Brokerage Corp. (FMIC) as joint issue managers.

It also tapped BDO Capital, ChinaBank Capital, FMIC, and Security Bank Corp. as joint lead underwriters and joint bookrunners.

Proceeds from the bond offer will be used to refinance debt and bankroll renewable energy projects, the firm said.

AboitizPower is also constructing the 94-megawatt peak (MWp) Sinag Power Cayanga project in Bugallon, Pangasinan, which is targeted to start commercial operations by the  fourth quarter this year.

This is the company’s second solar facility after its 59-MWp solar plant in San Carlos City, Negros Occidental.

AboitizPower is also issuing a notice to proceed (NTP) for the 160-MWp PV Sinag Power Laoag project, which is expected to commercially operate by the  third quarter of 2023.

It also has 721 MW of RE projects under priority development which are expected to commercially operate by 2024 to 2025.

AboitizPower has set a 10-year growth strategy which aims to contribute to a more reliable, cost-efficient, and sustainable power system for the country.

With a projected investment of around P190 billion, the company is looking to grow its Cleanergy capacity to 4,600 MW, which will make up 50 percent of its total generation portfolio of 9,200 MW by 2030.