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Aboitiz seeks up to PHP 39.6 billion for power plants, note redemption
By Toni Weeks
San Diego, March 14 - Aboitiz Equity Ventures, Inc. subsidiaries plan to raise up to PHP 39.6 billion from offerings of fixed-rate notes for two power plant projects and debt refinancing, according to a letter to the Philippine Stock Exchange, Inc.
Stephen Paradies, chief finance officer, said the group's power subsidiary, Aboitiz Power Corp., is planning to raise up to PHP 17 billion to fund a 300-megawatt coal-fired plant project in Subic Bay, northwest of Manila. This amount covers the estimated external financing requirement for the entire project of Redondo Peninsula Energy, Inc. (RP Energy), a unit of Aboitiz Power, in its joint venture with Taiwan Cogeneration International Corp. Aboitiz Power's beneficial share in that project is 50%.
A second PHP 17 billion notes issue with a maturity of about 12 years will fund a 300-megawatt coal-fired power plant in the southern province of Davao.
Construction of the group's two coal-fired power plants is expected to take about three years, Paradies said.
Pilmico Foods Corp. and Pilmico Animal Nutrition Corp., both wholly owned subsidiaries, are seeking to raise PHP 2.1 billion by April for expansion projects. Australia and New Zealand Banking Group will arrange Pilmico's debt offer, which will have a maturity of five to seven years.
Aboitiz Power also expects to raise a separate PHP 3.5 billion to refinance the company's PHP 3 billion of one-year and three-year fixed-rate notes due 2012.
Aboitiz Equity Ventures is the holding company for Aboitiz & Co.'s power, banking, food and transport businesses. The group is based in Cebu City, the Philippines.
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