AboitizPower plans to raise P30B from bond issue

ABOITIZ POWER Corp. (AboitizPower) is planning to raise up to P30 billion from the issuance of peso-denominated, fixed-rate retail bonds to fund possible acquisitions and investments.

In a disclosure to the stock exchange on Thursday, AboitizPower said its board of directors approved the plan to issue the bonds, which will be done in one or more tranches depending on market conditions.

The first tranche is expected to be offered within the year. The offer price, tenors, and terms and conditions of the bonds have yet to be finalized.

“The Company will use the proceeds of the Retail Bonds to finance potential acquisitions, future investments, and other general corporate requirements,” AboitizPower said.

AboitizPower said the retail bonds will be registered under the shelf registration program of the Securities and Exchange Commission.

The power unit of Aboitiz Equity Ventures posted a net income of P20 billion in 2016, higher by 14% compared with P17.6 billion in the previous year.

In 2016, the company recorded a non- recurring losses of P612 million, mainly from foreign exchange losses from revaluation of dollar-denominated liabilities, refinancing costs and goodwill impairment. Excluding these one-offs, AboitizPower’s core net income for 2016 reached P20.6 billion, up by 12% year on year.

Stocks for AboitizPower were unchanged on Thursday, to close at P42.70 apiece. —