Aboitiz Power’s P10-B bond offer 2.4 times oversubscribed


Aboitiz Power Corp., the listed power generation unit of the Aboitiz Group, completed its fixed-rate retail bond sale on Thursday, raising P10 billion in fresh funds to partly finance its power projects.

“The bonds were well received by both institutional and retail investors, resulting in an order book that was 2.4 times oversubscribed,” Aboitiz said in a statement.

The P10 billion funds raised came from the P5 billion initial bond offer and the P5 billion oversubscription option. The offer period was from August 29 to September 3.

“The strong investor demand enabled Aboitiz Power to use the oversubscription option, and issue the Bonds up to the P10-billion maximum offer,” the company added.

The bonds were divided into two series: Series A bonds due 2021 with an annual 5.205 percent interest rate, and Series B due 2026, with interest rate of 6.1 percent per annum.

Aboitiz Power appointed BPI Capital Corp. as the sole issue manager and lead underwriter. Co-lead underwriters were BDO Capital & Investment Corp, First Metro Investment Corp. and Land Bank of the Philippines, while the participating underwriters were China Banking Corp. and PNB Capital and Investment Corp.

The company said it plans to list the bonds on the Philippine Dealing & Exchange Corp.

The power firm recorded a 7-percent decline in first-half net income to P6.8 billion from the year-earlier P7.3 billion. The drop was mainly due to the cost of ongoing projects, as well as the “implementation of the Geothermal Resources Sales Contract for the Tiwi-Makban plants and weaker ancillary performance of the Magat plant.”

Aboitiz Power has ongoing works for the 14-megawatt (MW) Sabangan run-of-river hydro plant and 300-MW Davao coal plant. It expects to begin construction of its 400-MW Pagbilao expansion, 300-MW Cebu Coal, and 68-MW Manolo Fortich projects in the next few months.


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