Aboitizpower to offer ₧12B in fixed-rate retail bonds

The board of Aboitiz Power Corp. has approved the company’s issuance of up to P12 billion in fixed-rate retail bonds in the fourth quarter.

The amount represents the second tranche of the p30-billion bonds registered last March under the shelf registration program of the Securities Exchange Commission. The first tranche—p8 billion, including oversubscription—was issued last March 1.

“Subject to market conditions, the Second Tranche Bonds is expected to be offered to the general public in the fourth quarter of 2021 and shall be listed with the philippine Dealing and Exchange Corporation (pdex) as and when issued,” it said in a disclosure Monday.

The company’s board also delegated management to determine the final issue amount, interest rate, offer price, tenors, and other terms and conditions of the bonds, including the parties that will manage the offer.

proceeds of the second tranche will be used for refinancing, general corporate purposes and future renewable projects.

The power firm’s goal is to end with 9,200megawatts (MW) of total attributable net sellable capacity in the next decade. of which, 4,600MW will come from various renewable energy (re) sources.

To meet the 4,600MW re capacity target, Aboitizpower needs to build around 3,700 MW of additional re capacity under its Cleanergy portfolio. The company has said it is ready to spend p190 billion to add 3,700MW in its re portfolio.

As of July this year, Aboitizpower has already identified 2,364 MW of new re projects, all in varying stages of development and located primarily in Luzon.

“We are committed to seeing through our 10-year strategy and this is only the beginning. There will be more beyond this pipeline in order for us to reach our target,” Aboitizpower president Emmanuel V. rubio said.

The company’s pipeline re projects are currently 60 percent solar, 32 percent wind, and 9 percent hydro.

Since all of these projects are still in the development stage, specific details on size and cost are still being finalized.

“We look forward to making further announcements in the coming months as we progress with these projects,” rubio added.

The power firm is optimistic that it can hit its 2030 goal without building any new coal-fired power plant facilities.

The company reported in July that its net income in the first half reached p10.1 billion. In the second quarter alone, its net income reached p4 billion.

Aboitizpower reported strong financial results in the second quarter as its newest power facility—gnpower Dinginin 1—was commissioned. It also recognized higher water inflow, higher demand, and higher WESM dispatch in compliance with the must-offer rule as among the factors that boosted earnings.