SEC okays AboitizPower’s P100-B bond sale
Aboitiz Power Corp. is set to raise up to P100 billion from the domestic bond market after getting the green light from the Securities and Exchange Commission (SEC), allowing the energy firm to repay existing debt.
The corporate watchdog on Friday said its commission en banc had approved AboitizPower’s registration statement covering the shelf registration of up to P100 billion in fixed-rate bonds.
Shelf registrations allow companies to register bonds in bulk without having to undergo the registration process each time a chunk would be put on sale.
In AboitizPower’s case, it will offer up to P20 billion in fixed-rate bonds for the first tranche, with an option to upsize by up to P10 billion in case of high demand.
Local debt watchdog Philippine Rating Services Corp. (PhilRating) recently gave the bond offer a rating of PRS Aaa with a stable outlook.
The triple-A credit rating is the highest score that PhilRating can assign, showing that AboitizPower had an “extremely strong capacity” to meet its financial obligations. A stable outlook, on the other hand, means that the company will likely keep its credit score in the next 12 months.
The notes will be offered from June 23 to June 27, with listing on the Philippine Dealing and Exchange Corp. scheduled on July 7.
“Proceeds will be used for the refinancing and early redemption of the company’s existing debt,” the SEC said in a statement.
BDO Capital and Investment Corp., First Metro Investment Corp., Union Bank of the Philippines, China Bank Capital Corp., Land Bank of the Philippines, PNB Capital and Investment Corp. and Security Bank Capital Investment Corp. were tapped as joint issue managers and joint lead underwriters for the offer.
This comes amid expectations the Bangko Sentral ng Pilipinas will ease its monetary policy, especially after inflation cooled in May.
Rate cuts typically make fixed-income securities, such as bonds, more attractive since they offer a higher yield for investors.
AboitizPower has yet to price its upcoming bond offer.
The company saw its earnings in the three months to March drop 41.7-percent to P4.6 billion due to depreciation and interest expenses at its coal-fired power plant in Bataan province.
