The board of directors of Aboitiz Power Corporation has approved the company’s P30 billion peso-denominated fixed rate retail bonds to be issued in tranches.
The company said it will file registration for the planned bond issuance under the shelf registration program of the Securities and Exchange Commission.
As specified, the first tranche of the retail bonds will be P4.0 billion, with an oversubscription option of up to P4.0 billion.
“The first tranche is expected to be offered to the general public, subject to market conditions, during the first quarter of 2021,” the company has specified.
The firm similarly indicated that it plans to list the first tranche of its retail bonds with the Philippine Dealing and Exchange Corporation (PDEx).
The power investment arm of the Aboitiz group has been listed in an earlier report of the Department of Energy (DOE) this year that it had taken a giant leap to be the country’s biggest power producer with more than 4,000 megawatts of capacity under its portfolio.
The company is currently advancing to completion the two-phased Dinginin coal fired power facility – with the first 668MW due for commercial operations next year; and the second unit of another 668MW will be on commercial stream by year 2022. This project is its joint venture with the Ayala group.
Beyond this power project, the Aboitiz firm indicated that its next installations will be leaning generally on renewable energy (RE) and liquefied natural gas (LNG) technologies.
The forward investment trajectory of the group will be geared toward achieving 50:50 ratio on its thermal and clean energy development portfolios in the next decade; hence, it will be focusing more on RE and gas in the coming years.
While looking forward into the future, the company will also wade through a transition next year wherein it will need to improve financial performance, following the snags that affected its operations as well as top and bottom lines this year.
In the coming years, the firm is likewise looking for prospective offshore investments in power, primarily within neighboring Southeast Asian markets, such as Indonesia, Myanmar and Vietnam.