Aboitiz Power Corporation (AboitizPower) plans to raise up to ₱30 billion from a planned bond issuance, representing the initial tranche of its new three-year Shelf Registration program of up to ₱100.0 billion.

Philippine Rating Services Corporation (PhilRatings) said it has assigned the highest Issue Credit Rating of PRS Aaa, with a Stable Outlook, to proposed bond issuance of ₱20 billion, with an Oversubscription Option of up to ₱10 billion.

The ratings firm said it has also maintained its Issue Credit Rating of PRS Aaa, with a Stable Outlook, for AboitizPower’s total outstanding bonds, which amount to ₱43.3 billion.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. A Stable Outlook indicates that the rating will likely remain unchanged in the next 12 months.

PhilRatings said it identified key considerations in assigning the rating and the corresponding Outlook, including AboitizPower’s diversified portfolio with good growth prospects, its highly experienced management team, its healthy liquidity and ample coverage ratios, and the Company’s sound capital structure.

AboitizPower believes that meeting the country’s power demand requires a diverse generation mix. In view of such, the Company pursued more renewable energy projects alongside thermal technologies. 

AboitizPower continues to invest in renewable and selective baseload developments to reduce carbon dioxide and other greenhouse gas emissions. 

In the coming years, the Company aims to expand its renewable energy portfolio to a net attributable selling capacity of 4,600 MW, with 3,700 MW coming from new renewable energy projects. 

The Company allocated capital expenditures in 2025  to support these projects including the maintenance of its baseload plants, and further investments in land, new substations, and new meters for its distribution business. 

AboitizPower demonstrated sound liquidity and sufficient debt-servicing capacity over the past years. In 2023, the Company generated ₱50.3 billion in net cash flows from operating activities, a 46.9 percent increase from ₱34.2 billion in 2022, driven by favorable movements in operating income and lower working capital requirements. 

In 2024, however, AboitizPower recorded net cash flows from operating activities of ₱46.1 billion, an 8.2 percent decrease from the prior year. 

The Company maintained a healthy capital structure, with its debt-to-equity and debt-to-capitalization ratios at 1.1 times and 52.5 percent, respectively, in 2024. On the other hand, solvency ratio remained stable at 1.7 times. 

AboitizPower projects a generally declining debt balance in the medium to long term as it settles its debt obligations. It plans to continuously plowback its earnings, supporting equity growth. In turn, the Company expects its leverage to further improve overtime.