Aboitiz Power eyes P16.9-B fixed rate bond issue

Aboitiz Power Corp. plans to issue within this semester P16.9 billion worth of fixed rate bonds as the company nears its goal of building a portfolio of at least 4,000 megawatt (MW) of installed generation capacity.

The issue on cue will be the third tranche out of a P30-billion shelf registered bonds approved by the Securities and Exchange Commission in 2017.

AboitizPower issued an initial tranche worth P3 billion in July 2017, followed by the second tranche worth P10.2 billion in October.

“Subject to market conditions, the third tranche is expected to be offered to the general public in the second half (of) 2019 and shall be listed with the Philippine Dealing and Exchange Corp.,” the company said in a regulatory filing.

“Proceeds of the third tranche bonds will be used to finance planned acquisitions, future investments, and/or other corporate requirements,” it added.

Last October, when the second tranche was issued, AboitizPower chief finance officer Liza Luv T. Montelibano said bond proceeds would be used for debt repayment, particularly those related to the company’s subscription of shares in two power plants.

In late 2016, the government gave the green light for AboitizPower—through its wholly owned subsidiary Therma Power Inc. (TPI)—to acquire indirect partnership interests in GNPower Mariveles Coal Plant Ltd. Co. (GMCP) and GNPower Dinginin Ltd. Co. (GNPD).

GMCP has a 604-MW thermal power plant that started operations in 2014, while GNPD is building a thermal power plant with two units of 666-MW generators, the first one with the goal of commercial operations by 2019.