PH Digest: AboitizPower’s $600m bonds offer okayed; Manila Water, CWD ink JV

Visual from AboitizPower Corp

The Securities and Exchange Commission has permitted Aboitiz Power Corp to proceed with its $600 million public offering of retail bonds, while Manila Water and Calasiao Water District signed a joint venture that will run a new water system.

AboitizPower’s $600m bonds offer okayed

Aboitiz Power Corp (AboitizPower) received the approval of the Securities and Exchange Commission (SEC) on Monday (June 19) for its more than $600 million (P30 billion) retail bonds offer.

The first tranche of the public offer is scheduled for June 20-23, 2017 worth P3 billion.

“Proceeds from the first tranche of the bonds will be used to finance an investment into a company partly owned by AboitizPower,” the power firm said in its statement.

AboitizPower engaged BPI Capital Corp as the issue manager and underwriter for the first tranche, BPI Asset Management and Trust Corp as the trustee, and the Philippine Depository & Trust Corp (PDTC) as the registrar of the bonds.

“AboitizPower intends to list the bonds with the Philippine Dealing & Exchange Corporation (PDEx),” the company noted.

The bonds earlier received the highest possible rating of “PRS Aaa” from the Philippine Rating Services Corp.

As a listed company of Philippine conglomerate Aboitiz Group, AboitizPower is the group’s holding company for investments in power generation, distribution, and retail electricity services.

AboitizPower’s last trading price increased 1.82 per cent or P0.70 to close at P39.20 per share on Monday.

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Manila Water, CWD ink JV

The Manila Water Company Inc earlier signed a joint venture agreement with the Calasiao Water District (CWD) as part of developing a new local water system.

A 90:10 ownership between Manila Water and CWD, respectively, the joint venture will handle the design, construction, rehabilitation, maintenance, operation, financing, expansion, and management of the new CWD water supply system in the municipality of Calasiao in Pangasinan province.

The joint venture company will have a paid-up capital of up to $530,000 (P26.4 million).

The JV is slated to enter into a concession agreement with the CWD for the project’s implementation for 25 years from its beginning.

Manila Water last traded at P31.15 per share on Monday, about 3.83 per cent higher than Friday’s P30 per share.

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