By Juzel L. Danganan
MANILA, Sept. 4 (PNA) — Aboitiz Power Corporation has closed the offering for fixed rate retail Series B bonds that will have an annual interest worth 6.1 percent.
The Series B bond holders, which are intermediate due to their maturing date of 12 years time, will earn a total interest of 73.2 percent from the aggregated 6.1 percent per year.
“The Series B bonds are due on 2026 with a fixed interest rate of 6.1 percent per annum. With a twelve-year tenor, the Series B bonds has one of the longest tenures among the corporate bond issuance for 2014,” the company said in a disclosure at the Philippine Stock Exchange (PSE) on Thursday.
Aboitiz has extended the maximum issue size of the bonds up to Php 10 billion, due to the flocking of investors.
Bonds work as such, in exchange of money, the company will give out notes that indicates which type of bond the investor received and how much he gave out. He can only earn back his money at the time when his bond has matured, in which the note will be useful during the interest claiming.
Included in the issuance of the Php 10-billion are Series A bonds which will mature earlier by five years, or in 2021, than the Series B bonds. It will have an interest of 5.2 percent per year.
The two types of bonds were offered from August 29 to September 3.
It will be listed at the Philippine Dealing & Exchange Corporation, with Bank of the Philippine Islands (BPI) Capital Corporation acting as sole issue manager and lead underwriter for the transaction.
On the other hand, Banco De Oro (BDO) Capital & Investment Corporation, First Metro Investment Corporation, and Land Bank of the Philippines (LBP) acted as co-lead underwriters while China Banking Corporation and Philippine National Bank (PNB) Capital and Investment Corporation as participating underwriters to the issuance.
Last June 18, Aboitiz Power said that the proceeds for the Php 10 billion bond proceeds will be allocated to replenish working capital, partially fund ongoing projects and for other general purposes. It was authorized by Aboitiz’s Board of Directors on the same day.
Aboitiz Power Corp owns 21 power plants in the country, mainly in Luzon and Mindanao. Aboitiz Equity Ventures Inc (AEV) still retains a hold on the company, through its 76.8 percent stake. (PNA)