ABOITIZ Power Corp. is preparing to raise up to P30 billion through the issuance of fixed-rate retail bonds.
The proceeds will be used to finance potential acquisitions, future investments and other general corporate requirements.
“For all acquisitions, including RE [renewable energy],” said AboitizPower President Antonio Moraza in a text message when asked to provide further details.
The peso bonds will be issued in one or more tranches depending on market conditions, with the first tranche expected to be offered within the year.
The retail bonds will be registered under the shelf-registration program of the Securities and Exchange Commission. The company intends to list the first tranche of the retail bonds with the Philippine Dealing and Exchange Corp.
The final determination of the offer price, tenors, and other terms and conditions of the bonds will be finalized by management soon.
Aboitiz, together with partners, is expected to complete five more power projects this year with a total capacity of over 800 megawatts (MW).
Moraza said the company continues to push its balanced-mix strategy into the year, with coal and hydro plants, underlining the company’s strategy to have a wide and diverse portfolio of generating assets.
“That has always been part of our strategy, to tap renewable energy as long as it is available and cost-effective for the consumers, but, at the same time, utilize the reliability of thermal power plants,” Moraza said.
The company is targeting to achieve 4,000-MW net sellable capacity by 2020.