Aboitiz Power Corp. will funnel a significant portion of the proceeds from its P12-billion second tranche issue to its 74-megawatt solar farm project in Pangasinan.
Apart from that, the power firm indicated that the capital raising activity targets to raise fresh cash that it can use “to refinance the 2020 Series E bonds maturing in 2022.”
For the new P12 billion bond float, Aboitiz Power disclosed on Thursday (September 30) that it already filed its application with the Securities and Exchange Commission.
That will be the second tranche of its P30-billion shelf registration with the SEC, while the first tranche of P8.0 billion issue was already concluded earlier this year.
“The second tranche bond, with an aggregate principal amount of up to P12 billion, including oversubscription, is expected to be issued in the fourth quarter of 2021 – in one or two series,” the company emphasized.
The designated joint issue managers, joint lead underwriters and joint bookrunners are BDO Capital & Investment Corporation, First Metro Investment Corporation and Security Bank Capital Investment Corporation while the appointed trustee is BDO Unibank Inc.- Trust and Investments Group.
The Pangasinan solar project of Aboitiz Power will be one among the blueprinted greenfield renewable energy (RE) ventures of the conglomerate that will bring it to investment journey that is primarily anchored on its portfolio rebalancing.
And with the recent entry of Japanese firm JERA Co. Inc. as its equity partner, the Aboitiz company is eyeing that the two companies can jointly reinforce synergies on forward investments in the RE space as well as in power generating assets feeding on liquefied natural gas (LNG).
According to Aboitiz Power President and CEO Emmanuel V. Rubio, their company is targeting “to work collaboratively with JERA to achieve our 10-year vision of increasing our generation portfolio to 9,000 megawatts – by adding 3,700MW of RE capacity resulting in a 50:50 balance between Cleanergy and thermal portfolios.”
The company’s ‘Cleanergy’ brand is leaning on the RE capacities that it has been delivering to customers – including those that are coming from its existing geothermal, hydro and solar assets.
Beyond RE and LNG installations, Rubio conveyed that the other investment areas their company has been exploring with JERA would include potential participation in aspects of plant operation and maintenance (O&M); as well as application of new and innovative technologies like hydrogen.