The board of Aboitiz Power Corp. appointed BDO Capital & Investment Corp. and First Metro Investment Corp. as joint issue managers, book-runners and lead underwriters, and BDO Unibank-Trust and Investments Group as trustee for the proposed issuance of the third tranche of retail bonds worth at least P10 billion.
Aboitiz Power said it will issue retail bonds with a base issue size of P10 billion (and an oversubscription amount to be determined at a later date) as the third tranche of the company’s P30-billion fixed-rate retail bonds registered in 2017 under the shelf registration program with the Securities Exchange Commission.
“Subject to market conditions, the Third Tranche Bonds are expected to be offered to the general public in the second half 2019 and shall be listed with the Philippine Dealing and Exchange Corporation (PDEx) as and when issued,” Aboitiz Power said.
The board delegated to the company’s management the final determination of the issue amount, interest rate, offer price, tenors and other terms and conditions of the bonds.
“As previously disclosed, proceeds of the Third Tranche Bonds will be used to finance planned acquisitions, future investments, and/or other corporate requirements,” it said.
Aboitiz Power acquired a 49-percent voting interest and 60-percent economic stake in AA Thermal Inc., the coal asset platform of the Ayala Group in the country, for $579.2 million (P31.4 billion) in September last year.
The company issued the first tranche on July 3, 2017 in the amount of P3 billion, and the second tranche worth P10.2 billion o October 25, 2018.
Aboitiz Power’s second tranche bonds received strong market response when issued last year.
“Despite market volatility, our base offer is fully subscribed. While the purpose of this second offering is to refinance and repay some of our existing loan obligations, it is part of a larger goal of providing the country 4,000 megawatts of installed capacity by 2020,” Aboitiz Power chief finance officer Liza Montelibano said earlier.
“This exercise enables us to further our brand promise of advancing business and communities. By raising funds for Aboitiz Power, we are able to give our investors a chance to be part of a growth story they are in,” Montelibano said.
