AboitizPower raising P100 billion from fixed-rate bond offering

February 28, 2025 | 12:00am

MANILA, Philippines — Aboitiz Power Corp. is returning to the bond market after three years, this time planning to raise as much as P100 billion in fresh funds to beef up its war chest.

In a disclosure to the Philippine Stock Exchange, the company said its board of directors approved the filing of a registration statement before the Securities and Exchange Commission for P100 billion worth of fixed-rate retail bonds.

The peso-denominated bonds under the shelf registration program will be issued in tranches.

For the first tranche, AboitizPower plans to issue an initial P20 billion worth of retail bonds, with an oversubscription of up to P10 billion.

The offer period for the first tranche is set for the second quarter of the year, with listing on the Philippine Dealing and Exchange Corp. targeted by the third quarter.

The proceeds of this issuance will be used by AboitizPower to refinance its corporate debts and fund its other general corporate requirements.

The company’s management is tasked with determining the final issue amount, interest rate, offer price, tenors and other terms and conditions of the retail bonds, including the appointment of parties that will manage the offering.

In 2022, AboitizPower successfully raised P10 billion from the issuance of the third and final tranche of its previous P30-billion shelf registration, proceeds of which were used to boost its renewable energy fleet.

As the energy arm of the Aboitiz Group, AboitizPower intends to further invest in thermal power plants to support the country’s baseload and peak energy demands.

To date, the company’s portfolio includes over 1,000 megawatts of disclosed projects from various indigenous energy sources, with plans to further scale up its renewables capacity to 4,600 MW by 2030.