By Lenie Lectura -October 1, 2019
from Business Mirror
ABOITIZ Power Corp. has received the green light from the Securities and Exchange Commission (SEC) to proceed with its bond sale worth up to P12 billion.
“AboitizPower received the certificate of permit to offer securities for sale dated September 27, 2019, from the Securities and Exchange Commission. The permit allows AboitizPower to issue the third tranche of its P30-billion peso-denominated fixed-rate retail bonds registered under the shelf registration program of SEC on June 19, 2017,” said the power firm Monday.
The third tranche bonds, with a principal amount of P7 billion and an oversubscription option of up to P5 billion, will be issued on October 14. The offer period is from September 30 to October 4, 2019.
The power firm has tapped BDO Capital & Investment Corp. and First Metro Investment Corp. as Joint Issue Managers; BDO Capital & Investment Corp., First Metro Investment Corp., China Bank Capital Corp., SB Capital & Investment Corp. and PNB Capital & Investment Corp. as Joint Bookrunners and Joint Lead Underwriters for the bonds.
BDO Unibank-Trust and Investments Group has been appointed Trustee and the Philippine Depository & Trust Corp. will act as the Registrar of the Bonds.
The bonds received an issue credit rating of “PRS Aaa” with a Stable Outlook from the Philippine Ratings Services Corp. last August 30.
“Obligations rated PRS Aaa are of the highest quality with minimal credit risk, an indication of the extremely strong capacity of the obligor to meet its financial commitment on the obligation,” said PhilRatings.
With a stable outlook, the rating is likely to be maintained or to remain unchanged in the next 12 months.
PhilRatings said the ratings and outlook were assigned based on the significant levels of cash, and cash flows in relation to debt service requirements; adequate capital structure supported by healthy growth in retained earnings; diversified portfolio with good growth prospects; and experienced management team.
AboitizPower intends to list the Bonds with the Philippine Dealing and Exchange Corp.
Proceeds would be used to refinance loans, repay its short-term loan obligations and for general corporate purposes.
The power firm’s current attributable power capacity is 3,200 megawatts. Of this, 1,200 MW is renewable energy. It has set a target energy capacity of 4,000 MW by 2020.
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