AboitizPower to redeem P2.5B bonds early

Aboitiz Power Corp. will redeem P2.5 billion worth of fixed-rate retail bonds this month, three years earlier than their 2028 maturity.

The company's board of directors approved the early redemption of its ten-year Series C bonds, issued in 2018 with an annual interest rate of 8.6091%.

AboitizPower will use proceeds from its retail bond issuance earlier this year to fully prepay these bonds.

BDO Unibank, Inc.-Trust and Investment Group and the Philippine Depository and Trust Corp. are handling the notification and payment processes for the bondholders.

This redemption is part of a broader strategy to refinance existing obligations, following its P30 billion retail bond offering.

The P30 billion offering was the initial tranche of the company's P100 billion bond program and was assigned a PRS Aaa issue credit rating with a stable outlook by Philippine Ratings Services Corp.

Separately, the Bank of the Philippine Islands (BPI) has provided P7.4 billion in financing for AP Renewable Energy Corp., a subsidiary of Aboitiz Renewables Inc., to build a 221-megawatt peak solar power plant in Olongapo, Zambales.

This solar project is part of AboitizPower's expansion into clean energy to diversify its generation mix and support the Philippines' energy transition targets.