Aboitiz Power Corp. (AboitizPower) has listed its fixed-rate bonds worth P8 billion on the Philippine Dealing & Exchange Corp. (PDEx).
The power company told the Philippine Stock Exchange on Tuesday that the value of the Series A bonds included oversubscription and PDEx’s approval of them “paves the way” for their trading on the secondary market.
The bonds carry a fixed interest rate of 3.8224 percent per annum and will mature in 2026.
Earlier this month, the Securities and Exchange Commission approved AboitizPower’s offer of fixed-rate retail bonds in the aggregate principal amount of up to P30 billion, to be issued in tranches. The initial offer ran from March 2 to 8.
The firm plans to use the proceeds to refinance its corporate debts and/or for other general corporate purposes.
The remaining tranches may be issued occasionally over the next three years, subject to market conditions and the company’s funding requirements.
Philippine Ratings Services Corp. (PhilRatings) assigned its highest “PRS Aaa” with a stable outlook to the retail bonds.
According to PhilRatings, obligations rated as such are of the highest quality with minimal credit risk and indicates the firm’s extremely strong capacity to pay the obligation.
A stable outlook, it said, means “[t]he rating is likely to be maintained or to remain unchanged in the next 12 months.”
AboitizPower shares dropped by 55 centavos or 2.14 percent to end at P25.10 each on Tuesday.