The Securities and Exchange Commission approved the application of Aboitiz Power Corp. to raise up to P30 billion.
The SEC en banc in a meeting on Feb. 23 approved the respective registration statements of Aboitiz Power for the issuance of fixed-rate bonds.
Aboitiz Power may issue the debt securities in one or more series within three years.
For the first tranche, the listed company will offer up to P4 billion of fixed-rate bonds due 2026, with an oversubscription option for another P4 billion, at face value, which is expected to be offered to the general public in the first quarter.
Assuming full exercise of the oversubscription option, Aboitiz Power expects to net P7.895 billion from the first tranche.
The proceeds will be used for the redemption of bonds maturing 2021 and for the early redemption of bonds maturing in 2026.
The company said it aimed to list the fixed-rate bonds for trading on Philippine Dealing & Exchange Corp.
“Aboitiz Power expects to issue subsequent tranches of the bonds under this shelf registration statement, as the need arises and as market conditions permit,” the company said earlier.
Meanwhile, Unit 1 of Aboitiz Power’s Mariveles coal joint venture project with a capacity of 247 megawatts went on unplanned outage because of boiler damage. The company said repair could take until the end of the year.
GNPower Mariveles Energy Center Ltd. Co. informed Aboitiz Power of the unscheduled outage of Unit 1 which was traced to the damage found in a portion of the boiler.
Abotiz Power said the procurement of the necessary services for restoration works was underway, and, based on current assessment, the completion of repair and Unit 1’s return to service were expected by the third quarter or fourth quarter.
GMEC’s insurance brokers and adjusters were informed, and the parties were undergoing the process of filing the insurance claims. Coordination with regulators and other key stakeholders is also ongoing.
GMEC is a private limited partnership organized on May 13, 2007 and established to undertake the development, construction, operation, and ownership of 632 MW (2×316 MW) pulverized coal-fired power plant in Mariveles.