ABOITIZPOWER RAISES P7.25B FROM BONDS
The bonds have a tenor of seven years and fixed interest rates of 5.2757 percent per annum
AboitizPower Corp. generated as much as P7.25 billion through the issuance of fixed-rate bonds.
In a regulatory filing on Monday, AboitizPower said it listed the bonds at the Philippine Dealing Exchange.
The new bonds, the Series D fixed-rate bonds, served as the third tranche of its P30-billion shelf registration program approved by the Securities and Exchange Commission in June 2017. The bonds have a tenor of seven years and fixed interest rates of 5.2757 percent per annum.
Aboitiz Power said proceeds from the issuance will be used to repay existing short-term obligations and for other general corporate purposes.
BDO Capital and Investment Corporation and First Metro Investment Corp. were tapped as joint issue managers for the transaction, while also acting as joint bookrunners and joint lead underwriters along with China Bank Capital Corp., SB Capital and Investment Corporation and PNB Capital and Investment Corp.
On 30 August 2019, Aboitiz Power received the highest issue credit rating, “PRS Aaa” and a stable outlook from Philippine Ratings Services Corp.
According to PhilRatings, obligations rated “PRS Aaa” are of the highest quality with minimal credit risk, an indication of the extremely strong capacity of the obligor to meet its financial commitment on the obligation. A stable outlook, meanwhile, means that the rating “is likely to be maintained or to remain unchanged in the next twelve months.”
PhilRatings said its assessment was based on factors such as the company’s significant levels of cash and cash flows in relation to the debt service requirement, adequate capital structure supported by healthy growth in retained earnings, diversified portfolio with good growth prospects, and experienced management team.
The company issued the first tranche amounting to P3 billion in July 2017, while the second tranche worth P10.2 billion was listed in October 2018. The third tranche issuance would leave the company with P9.55 billion left in its shelf.