The board of directors of Aboitiz Power Corporation had given go-signal for the second tranche of the company’s bond issuance that is targeting to fetch proceeds of P12 billion.

The P12 billion bond issue is part of the company’s P30 billion shelf registration program that was approved by the Securities and Exchange Commission (SEC) early this year.

“Subject to market conditions, the second tranche bonds is expected to be offered to the general public in the fourth quarter of 2021 and shall be listed with the Philippine Dealing and Exchange Corporation (PDEx) as and when issued,” the company said.

The Aboitiz Power board further delegated to the management “the final determination of the issue amount, interest rate, offer price, tenors, and other terms and conditions of the bonds, including the parties that will manage or otherwise be involved in the offer.”

The power firm emphasized that the proceeds from this batch of bond offering “will be used for refinancing, general corporate purposes and future renewable projects.”

Aboitiz Power is eyeing to hike its RE capacity by up to 4,600 megawatts in the next 10 years, an investment buildup that will rebalance its thermal-to-clean energy portfolio to a 50:50 ratio.

“This aspirational target is fully supportive of the government’s efforts to build the Philippine renewable energy market and is well aligned with global renewable energy goals,” the company noted.

The power firm’s first tranche bonds issue of P8.0 billion was consummated in March; and it was declared to have been ‘oversubscribed’; which was considered a manifestation of investors’ interest on the bond float.

In an earlier disclosure to the Philippine Stock Exchange (PSE), Aboitiz Power similarly indicated that it opted for full early redemption of its P3.4 billion Series B bonds issued in 2014 -- and that bond series still has its maturity in 2026.

Under the trust agreement for that bond issue, it was stipulated that “the issuer shall have the option, but not the obligation, to redeem in whole (and not in part), any series of the outstanding bonds on the following dates or the immediately succeeding banking day, if such date is not a banking day.”

Aboitiz Power stated that the bond redemption was completed last September 10 and payment was made through the Philippine Depository & Trust Corp as the paying agent.