AboitizPower weighs various fundraising modes

Aboitiz Power Corp., the listed power business of conglomerate Aboitiz Equity Ventures Inc. is exploring various ways to bankroll its renewable energy (RE) projects in the pipeline.

AboitizPower chief financial officer Liza Luv Montelibano said the company was planning to stage the issuance of green bonds by 2023.

“I’m really planning we get to do a green bond and hope to be able to do it before the end of next year,” she told reporters.

Green bonds refer to debt securities whose proceeds are earmarked for projects with clear environmental benefits.

Another fundraising activity that AboitizPower is considering is the listing of AP Renewables Inc. (APRI), its renewable energy arm.

“It’s always an option. It’s open for us. We’re looking at it,” said Emmanuel Rubio, president and CEO of AboitizPower.

Montelibano said they are evaluating several options, noting some of the investors today prefer investing in a company whose business is purely in the renewables field.

“I think what investors will be valuing are our current assets, our ability to execute to meet our commitments and the value of our pipeline moving forward,” added Rubio. “I think the value of the assets is a box ticked The history of execution, that can be ticked. But the pipeline, that’s something that we are developing.”

Montelibano noted AboitizPower has a good renewables portfolio and “there are varied ways to extract value.”

Yet, Rubio said the firm would need to consider the implications of listing APRI separately from AboitizPower and stage the initial public offering “if there is really a need.”

Montelibano also said timing is the key to planning any public offering.

The firm aims to grow its renewable portfolio to 4,600 megawatts by decade’s end.