NICOLAS, CATHERINE JOYCE M.

• AboitizPower expects to raise gross proceeds of up to

[P10,000,000,000] from the primary offer, and up to
[P15,000,000,000] if the Over-Subscription Option is
fully exercised. The net proceeds from the Offer is
estimated to be P[9,881,132,143] from the primary
offer P or P[14,825,066,964]if the Over-Subscription
Option is fully exercised, after fees, commissions, and
expenses. Proceeds of the Offer shall be used for (i)

Purpose refinancing of the medium-term loan of Therma Power,

Inc., (ii) repayment of its short-term loan obligations;
and (iii) general corporate purposes., which are
discussed further in the section entitled “Use of
Proceeds” on page 48 of this Prospectus. The Sole Issue
Manager and Joint Lead Underwriters shall receive an
aggregate fee of [0.315% inclusive of GRT] on the final
aggregate nominal principal amount of the Second
Tranche Bonds issued, which is inclusive of
underwriting fees and selling commissions to be paid.
 BOND RATINGS

“Obligations rated PRS Aaa are of the highest quality with minimal credit risk, an
indication of the extremely strong capacity of the obligor to meet its financial
commitment on the obligation,” said Philratings.
Bond Quotes

BONDS CUR VOL CLOSE NET

• Determine the Investor’s YLD CHG
Periodic Cash Flow AP 5.34 28 3.98 1.62 36 7/10 +1/4
• Cath Flow = Interest Payment PNX 6 5/825 1.35 .72 11 2/25 0.0
= Coupon Rate x Par
• = FGEN6.523 2.28 1.8 24 1/10 - 3/5
.0534 x 1000 = P53.4/year
MER4.88 25 2.99 .20 335 2/5 + 4/5
PCOR4.52 23 2.04 1.38 4.93 -2/5
 BONDS CUR VOL CLOSE NET
Bond Valuation YLD CHG
AP 5.34 28 3.98 1.62 36 7/10 +1/4
PNX 6 5/825 1.35 .72 11 2/25 0.0
• Investor that purchases
bond (2018) for P367 will FGEN6.523 2.28 1.8 24 1/10 - 3/5
receive 10 annual interest of
P53.40 and a P1,000 payment MER4.88 25 2.99 .20 335 2/5 + 4/5
in 10 years.
PCOR4.52 23 2.04 1.38 4.93 -2/5
 Bond Valuation Model

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

P53.40 P53.40 P53.40 P53.40 P53.40 P53.40 P53.40 P53.40 P53.40 P53.40
1000.00
P 53.40 Annuity for 10 years
P1000 lump sum in 10 years
= 53.40 ( 1/.08 – 1/ .08 (1+.08) 5) + (1000/(1+.08) 5)
= 53.40 ( 3.9927) + 680.58
= 213.21 + 680.58
= 893.79018
 Yield to Maturity

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

-367 P53.40 P53.40 P53.40 P53.40 P53.40 P53.40 P53.40 P53.40 P53.40 P53.40
1000.00

=(53.40 + (1000 – 367/ 10)) / (1000 + 2(367) / 3)

= 53.40+ 63.3 / 578
=116.70 / 578
= 20%
 Abotiz Power Corporation has been issued a credit rating of
PRS Aaa, with stable outlook, to the power firm’s third tranche
of its proposed issuance of P 10-Billion Fixed rate retail bonds
filed with the Securities and Exchange Commission last August
23 under its P30-billion shelf registration.
Perspective in
Investing to “obligations rated PRS Aaa are of the highest quality with
minimal credit risk, an indication of the extremely strong
capacity of the obligor to meet its financial commitment on the
Aboitiz Power obligation.” said Philratings.

Bond the power firm has said last year that the proceeds would be
use to refinance loans, repay its short-term obligations and for
general corporate purposes ( which means that they are just
solving their liabilities with another liabilities that made their
financial statement presentable)
REFERENCES
• https://edge.pse.com.ph/companyInformation/form.do?cmpy_id=60
9
• https://quotes.wsj.com/PH/AP/company-people
• https://aboitizpower.com/article/aboitizpower-lists-php-10-2b-fixed-
rate-bonds/
• http://www.philratings.com/(S(wef404454j5d2545h3x0ea55))/datab
ase.aspx
• https://aboitizpower.com/wp-content/uploads/AP-Bonds-2018-
Preliminary-Prospectus-08.29.18-SEC-received.pdf