Listed firm Aboitiz Power Corp. (AP) is seeking regulatory approval from the Securities and Exchange Commission (SEC) for its third tranche bond issuance worth P10 billion.

The targeted bond issue is part of the P30 billion fixed rate retail bonds that had been set for shelf registration with the SEC on March 1 last year. AP’s application for the third tranche issuance was lodged with the regulatory agency on Tuesday, Jan. 11.

“The third tranche bonds, with an aggregate principal amount of up to P10 billion, including oversubscription, is expected to be issued in one or two series in the first quarter of 2022,” the Aboitiz firm noted.

As emphasized, the proceeds of the bond will be used “to raise capital to refinance the company’s previously issued bonds, fund the construction of future renewable projects, and other general corporate purposes.”

Tapped as joint issue managers for this bond offering were BDO Capital & Investment Corporation, China Bank Capital Corporation and First Metro Securities Brokerage Corporation. The joint lead underwriters and joint bookrunners are BDO Capital, China Bank Capital, FMIC and Security Bank Corporation.

The power company said its third tranche bond issue will be listed at the Philippine Dealing and Exchange Corporation (PDEx), similar to what it had done with the initial tranches.

AP has been aiming for capacity addition of 3,900 megawatts within a decade stretch and the technology leaning of greenfield developments will be on renewable energy (RE) installations.

The initial development plans are currently focused on solar and wind farms in the Luzon grid and one venture that is already advancing is the 94-megawatt Cayanga solar farm project sited in Bugallon, Pangasinan.

The engineering, procurement and construction (EPC) contract for that solar farm installation was already awarded last December to JGC Philippines, a subsidiary of Japanese firm JGC Holdings Corp. That P4.5 billion solar plant is targeted for commercial operations by the fourth quarter of 2022.

As indicated by AP, next to take off from its project blueprint would be another solar plant in Aguilar, Pangasinan and that will yield a capacity of 167-megawatt peak.

For wind, the Aboitiz firm said it already erected met masts in Aguilar and Bugallon towns to accumulate resource data on prospective installations for that RE technology in the province.

The company explained that met mast is a measuring equipment that will aid project developer in data gathering on wind project prospect in terms of temperature, wind speed as well as wind direction being the key metrics needed in assessing energy production as well as in understanding the suitability of the facility’s siting.