Aboitiz Power prepares P100-B fundraising
Industry giant Aboitiz Power Corp. is returning to the domestic retail bond market to raise P100 billion, with the first tranche slated for offering by the middle of the year.
In a disclosure to the local bourse on Wednesday, Aboitiz Power said its board of directors had given the green light to apply for a new shelf registration program for the issuance of peso-denominated fixed-rate retail bonds.
Under a shelf registration, a firm can offer bonds in one or more tranches within a three-year window.
For the first tranche, Aboitiz Power said its board had likewise authorized the issuance of P20 billion worth of retail bonds by the second quarter. If the offering gains more traction, the company can exercise an oversubscription option of up to P10 billion.
It said the first tranche would be listed on the Philippine Dealing and Exchange Corp. by the third quarter.
Aboitiz Power has yet to disclose the terms and conditions of the retail bonds, as well as who will manage the offering.
New funds to be raised from this activity would help refinance corporate or other general corporate purposes, it added in the filing.
Three years ago, Aboitiz Power also raised P10 billion from the issuance of fixed-rate retail bonds, which was the third tranche of its P30-billion debt securities program approved by the Securities and Exchange Commission in March 2021.
Aboitiz Power has operations in power generation, power distribution, retail electricity services and distributed energy.
The energy arm of the Aboitiz Group has a portfolio of hydroelectric, geothermal, solar and thermal facilities.
By 2030, the company targets to have 4,600 megawatts of renewable capacity with the development of more solar, wind, geothermal, hydropower and battery energy storage systems.
The Philippine government hopes to increase the share of clean energy in the power generation mix to 35 percent by 2030 from the current 22 percent.
