Philippine Ratings Services Corp. assigned an issue credit rating of “PRS Aaa” with stable outlook on the third tranche of Aboitiz Power Corp.’s fixed-retail bonds amounting to P10 billion.
Aboitiz Power filed an application with the Securities and Exchange Commission to issue the third tranche of its P30-billion debt securities program on August 23.
The third tranche has an oversubscription option of up to P2 billion and a tenor of seven years.
PhilRatings said obligations rated “PRS Aaa” were 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 is defined as “the ratings is likely to be maintained or to remain unchanged in the next twelve months.”
PRS assigned the ratings and outlook based on the significant levels of cash and cash flows in relation to debt service requirements, adequate capital structure supported by healthy growth in retained earnings, diversified portfolio with good growth prospects and experienced management team.
Aboitiz Power’s outstanding P10.2-billion bonds issued on September 10, 2014 also obtained a PRS Aaa and stable outlook rating
The third tranche is expected to be offered to the general public during the fourth quarter.
Aboitiz Power said it would use will use the proceeds of the third tranche bonds to repay short-term loan obligations and for general corporate purposes.
Aboitiz Power recently signed a share purchase agreement for the acquisition of 100 percent of Mekong Wind Pte. Ltd. from Armstrong Southeast Asia Clean Energy Fund Pte. Ltd for $46 million.
Aboitiz Power’s acquisition through wholly-owned subsidiary AboitizPower International captures all legal and economic interest in Mekong Wind, which holds a 99.9999934 percent direct interest in Dam Nai Wind Power JSC.
Dai Nam Wind owns and operates the 39.4-megawatt onshore wind power facility in Ninh Thuan province, southern Vietnam. Ninh Thuan Province boasts some of the most attractive sites for wind energy in Vietnam.