AboitizPower Files Application with SEC for Issuance of Second Tranche Bonds

Aboitiz Power Corp. (AboitizPower, PSE: AP) has filed an application with the Securities and Exchange Commission (SEC) to issue the second tranche of its PhP30 billion Debt Securities Program, registered with the SEC under its shelf registration program on 19 June 2017. The Second Tranche Bonds, equivalent to PhP10 billion and with an oversubscription option of up to PhP5 billion, are expected to be offered to the general public during the fourth quarter of 2018.

AboitizPower will use the proceeds of the Second Tranche Bonds (i) to refinance the medium-term loan of its wholly-owned subsidiary Therma Power Inc., (ii) to repay its short-term loan obligations, and (iii) for general corporate purposes.

AboitizPower has appointed BDO Capital Corp. as Issue Manager for the proposed offering; BDO Capital, BPI Capital Corp., and United Coconut Planters Bank as Joint Lead Underwriters; and BDO Unibank Inc. Trust & Investments Group as Trustee. AboitizPower intends to list the Bonds with the Philippine Dealing and Exchange Corp.

The Second Tranche Bonds received an issue credit rating of PRS Aaa, with a Stable Outlook, from the Philippine Ratings Services Corporation (PhilRatings).

According to PhilRatings, obligations rated PRS Aaa are 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 rating is likely to be maintained or to remain unchanged in the next twelve months.” The rating and outlook were assigned based on the following key considerations: (i) significant levels of cash flows and financial flexibility in relation to debt service requirements; (ii) adequate capital structure supported by healthy growth in retained earnings; (iii) diversified portfolio, with good growth prospects; and (iv) experienced management team.

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