Aboitiz Power Corp. (AboitizPower) plans to raise up to P100 billion from the issuance of fixed-rate retail bonds, with the first tranche of up to P30 billion to be issued in the second quarter.
AboitizPower said in a disclosure to the stock exchange on Tuesday it filed with the Securities and Exchange Commission (SEC) a registration statement under its shelf registration program for its fixed-rate retail bonds in the aggregate principal amount of P100 billion.
The first tranche of the bonds, with an aggregate principal amount of up to P30 billion, including oversubscription, is – subject to market conditions – expected to be issued during the second quarter of 2025.
“AboitizPower will issue subsequent tranches of the bonds as needed. The proceeds of the bonds will be used to refinance corporate debts,” it said.
The company has appointed BDO Capital & Investment Corp. (BDO Capital), First Metro Investment Corp. (FMIC), and Union Bank of the Philippines (Unionbank) as joint issue managers; BDO Capital, FMIC, Unionbank, China Bank Capital Corp., Landbank of the Philippines, PNB Capital and Investment Corp., Security Bank Capital Investment Corp. as joint lead underwriters and joint bookrunners; and BDO Unibank, Inc. – Trust and Investments Group as the trustee for the proposed first tranche.
Upon issuance, AboitizPower intends to list the first tranche bonds with the Philippine Dealing and Exchange Corp.
The company, together with its partners, has set the capex budget at P78.1 billion for 2025.
“The biggest portion is still allocated for our renewable energy pipeline. The remainder will fund the maintenance of our baseload plants and further investments in land, new substations, and metering for our distribution business. Despite the elevated capex budget in 2025, Aboitiz Power remains committed to our dividend policy of paying out half of our previous year’s net income,” AboitizPower president and chief executive Danel Aboitiz said.
The company reported a 2-percent increase in 2024 net income to P33.9 billion from P33.1 billion in 2023 despite the recognition of depreciation and interest for GNPower Dinginin Ltd. Co.’s (GNPD) Units 1 and 2.
