Aboitiz Power Corporation Raises 8 Billion Fixed Rate Bonds on PDExPosted on: March 16, 2021
16 March 2021, Makati, Philippines — Aboitiz Power Corporation (AP) lists its PHP 8 Billion 5-year Bonds on the Philippine Dealing & Exchange Corp. (PDEx). This issuance is the first tranche of AP’s PHP 30 Billion Fixed Rate Bond Program and was well met by investors as it exceeded its base size of PHP 4 Billion. The bond carries an interest rate of 3.8224% per annum to be paid quarterly in arrears.
In his welcome remarks, PDEx President and Chief Executive Officer Antonino A. Nakpil recognized AP’s Battery Energy Storage Systems project and acknowledged AP for having been a longtime leader in their field. “As I recall, AP was leading in this field so early, it was already winning awards globally even before the Green, Sustainable and Social Bond Standards were formalized by the ASEAN Capital Markets Forum regionally and our SEC locally. So it is good to see that it is maintaining the lead in this area with projects in the area of Battery Energy Storage Systems, which are the natural complement to the intermittent supply inherent in renewable energy sources.”, said Mr. Nakpil.
In November 2020, AboitizPower announced its foray into battery technology with the TMI Hybrid BESS project located in Maco, Compostela Valley, which is to commence commercial operations in 2022.
Meanwhile, AP Chief Financial Officer, Liza Luv Montelibano explained the importance of this deal for AP. Ms. Montelibano stated “This deal is particularly important to us because it allows Aboitiz Power to bolster its capital by refinancing maturing debt and replacing existing premium cost debt. This helps Aboitiz Power in achieving its goals in addressing our country’s energy needs, helping drive economic growth, and creating meaningful social and environmental impact towards a brighter and more sustainable future.”
She also thanked the Securities and Exchange Commission for their efforts stating, “This deal would not have materialized if it were not for the Securities and Exchange commission whose support and flexibility enabled us and our partners to adapt to our continuously changing market environment.”
This 4th listing for 2021 brings the year-to-date total of new listings to PHP 41.37 Billion, pushing the total level of tradable corporate debt instruments to PHP 1.44 Trillion issued by 54 companies, comprised of 204 securities.