By Myrna M. Velasco
Publicly listed firm Aboitiz Power Corporation will be issuing ₱9.55 billion in fixed rate retail bonds in the second quarter of this year, as stated in its disclosure to the Philippine Stock Exchange.
The company said the issuance shall comprise the fourth tranche of the ₱30 billion worth of bonds that it registered three years ago under the shelf registration program of the Securities and Exchange Commission.
The company indicated “the proceeds of the fourth tranche of the bonds will be used to finance planned acquisitions, future investments and/or other corporate requirements.”
The investment-details moving forward had not been disclosed, although executives of the Aboitiz firm previously bared plans for projects both in the Philippines and some targeted markets in the Southeast Asian region — primarily Vietnam, Indonesia and Myanmar.
The company has been casting on blueprints several renewable energy projects mainly on run-of-river hydro and solar power installations.
Aboitiz Power emphasized that its board of directors had delegated the management to do “final determination of the issue amount, interest rate, offer price, tenors and other terms and conditions of the bonds including the parties which will manage or otherwise be involved in the offer.”
Aboitiz Power issued the initial three tranches successively from 2017 to 2019: the first tranche of ₱3.0 billion on July 3, 2017; then the second tranche of ₱10.2 billion on October 25, 2018; and the third tranche of ₱7.25 billion on October 14, 2019.
The firm stated that “subject to market conditions, the fourth tranche is expected to be offered to the general public in the second quarter of 2020.”
Aboitiz Power similarly stipulated that the bond issuance shall be listed with the Philippine Dealing and Exchange (PDEx) once consummated.
In recent years, the company completed suite of thermal power projects across grids that helped satiate the country’s need for baseload capacity and staved off a power supply crisis, chiefly in the Mindanao grid.