Aboitiz Power Corporation lists PhP 10 Billion Fixed Rate Bonds due 2021 and 2026 in PDEx organized secondary marketPosted on: September 11, 2014
10 September 2014, Makati, Philippines – Aboitiz Power Corporation (AboitizPower) returned to the Philippine Dealing & Exchange Corp. (PDEx) organized secondary market with a larger issue size of PhP10 billion issued as two securities – Series A Bonds with a tenor of seven years maturing on 2021, and the Series B Bonds with a tenor of twelve years maturing on 2026. AboitizPower’s 12-year Series B Bonds carries the longest tenor among the corporate bond issuances for this year.
The bonds, which earlier received the highest credit rating of PRS Aaa from local debt watcher Philippine Rating Services Corp. (PhilRatings), were oversubscribed by 2.4 times during the offer period.
This is the second listing for an Aboitiz company within the past twelve months. Aboitiz Equity Ventures, Inc. (AEV), AboitizPower’s controlling shareholder, also tapped the debt market late last year for its PhP8 billion AEV Bonds due 2020 and 2023. With today’s listing, the Aboitiz Group shall have a total bonds listed at PhP18 Billion.
This fourteenth listing for the year brings the year-to-date total of new listings to PhP159.5 Billion and the total level of tradable corporate debt instruments to PhP451.46 billion issued by 28 companies with 81 securities being traded.
PDEx Chairman & CEO Cesar B. Crisol said in his welcome remarks: “Keeping in step with the development of our issuer community, we, at the PDS Group, shall continue to harness our human and technological capabilities to maintain a robust and efficient infrastructure to assist our market participants to find the opportunities for their ever evolving investment requirements. We especially hope to have your support as we continue to move forward on all efforts to develop our capital market and prepare to meet our ASEAN+3 counterparts in broader regional markets.”
For his part, AboitizPower’s President & COO Antonio Moraza said: “This is AboitizPower’s second bond issuance and the largest one to date, following our first issuance in 2009. It is a testament to AboitizPower’s commitment to continued expansion and the investing public’s confidence in our growth story. To them, thank you. Strong investor demand has enabled us to double the transaction size to PhP10 billion, tap longer tenors of seven and twelve years, and command competitive rates for our two tranches.”
Also in attendance were the issue underwriters led by Bank of the Philippine Islands President Cezar P. Consing who shared a few words: “There are three things that come to mind when I look at transactions like this. First, it’s always a pleasure to underwrite a transaction for a company that leads its field and in a way that helps the bonds sell itself. Second, AboitizPower’s finance team has never taken capital markets access for granted even at times when there’s a lot of growth and liquidity. Third, if anything we would like to do more of your deals, I think two or three years from now, we will look back at this deal, and wonder, my golly, shouldn’t we have done more? Shouldn’t you have done more because when we sit there with no lights, no power, we would have wanted this deal to be two or three times bigger.”#