The Securities and Exchange Commission (SEC) has given the green light for Aboitiz Power Corporation to raise P12 billion via a fixed-rate bond offering.
Aboitiz Power informed the Philippine Stock Exchange on Monday that it received last week SEC’s certificate of permit.
Under the transaction, Aboitiz Power will offer a base size of P7 billion with an overallotment option of up to P5 billion.
The offer period started Monday and will end 4 October 2019. It will be listed on the Philippine Dealing Exchange on 14 October.
The new issuance will serve as the third tranche of the company’s P30-billion shelf registration program which was approved by the commission in June 2017.
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Aboitiz Power said it will use the proceeds to repay existing short-term obligations and for other general corporate purposes.
BDO Capital and Investment Corporation and First Metro Investment Corporation have been tapped as joint issue managers for the transaction, while also acting as joint bookrunners and joint lead underwriters along with China Bank Capital Corporation, SB Capital and Investment Corporation, and PNB Capital and Investment Corporation.
On 30 August 2019, Aboitiz Power received the highest issue credit rating “PRS Aaa” and a stable outlook from Philippine Ratings Services Corporation.
Obligations rated “PRS Aaa” by PhilRatings are of the highest quality with minimal credit risk, an indication of the extremely strong capacity of the obligor to meet its financial commitment.
A stable outlook, meanwhile, means that the rating “is likely to be maintained or to remain unchanged in the next twelve months.”
PhilRatings’ 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 on July 2017, while the second tranche worth P10.2 billion was listed October 2018.
The third tranche issuance would leave the company with P4.8 billion.
