Aboitiz Power Corp., the power generating unit of conglomerate Aboitiz Equity Ventures Inc., plans to issue up to P15 billion in fixed-rate bonds within the third quarter of the year.
Aboitiz Equity chief finance officer Manuel Lozano said in a chance interview last week the company would issue fixed-rate notes with a base offer of P10 billion plus P5 billion to cover oversubscription.
The planned bond offering represents the second tranche from Aboitiz Power’s P30-billion bond shelf registration approved by the Securities and Exchange Commission last year. Aboitiz plans to list the bonds with Philippine Dealing and Exchange Corp.
Aboitiz Power in April last year issued P3 billion in fixed-rate bonds due 2023 to finance the equity infusion in GNPower Dinginin Ltd. Co.
Aboitiz Power last month said its board directors approved the issuance of fixed-rate retail bonds from the shelf registration.
The company plans to use the proceeds from the issuance to fund potential acquisitions, future investments and refinance existing debt.
Aboitiz Power said the board delegated to the company management the final determination of the issue amount, interest rate, offer price, tenors and other terms and conditions of the bonds, including the parties that would manage the offering.
Aboitiz Power posted a net income of P9.1 billion in the first six months of 2018, down six percent from P9.7 billion year-on-year.
The company booked non-recurring losses of P1.4 billion from last year’s losses of P744 million as a result of net foreign exchange losses.
Without the one-off losses, the company’s core net income was flat year-on-year at P10.5 billion.
Aboitiz Power’s sales increased eight percent to 3,319 megawatts from 3,086 MW, driven by new capacities sold from the Pagbilao coal-fired power plant.
It recorded consolidated earnings before interest, taxes, depreciation, and amortization of P24 billion in the first half, up 10 percent from P21.8 billion on year.
