September 23, 2015

Aboitiz Power Corp obtains loan for hydro project

Aboitiz Power Corp (AP) announced through the Exchange that its wholly-owned subsidiary Hedcor Bukidnon Inc has obtained up to P10b in loans from a consortium of lender-banks to finance the development, construction, operation and maintenance of its 68.8MW hydroelectric power generation facility located in Manolo Fortich, Bukidnon.

The project is designed to have two cascading plants, with installed capacities of 43.4MW and 25.4MW for unit 1 and unit 2, respectively. The project broke ground last April and is targeted to be operational by 2H2017. Annual generation is estimated at 360 GWh.

Our take: As we noted previously, AP has several power projects slated for completion in the next several years. Aside from Manolo Fortich, AP’s other ongoing power generation projects include the second unit of AP’s 2x150MW Davao coal-fired power plant in 1Q16, the 400MW Pagbilao coal-fired power plant expansion (50% stake) in end-2017 and a 300MW Cebu coal-fired power plant (80% stake) in 2H18.

The company also has other power projects planned for development, which include the 600MW Subic coal project (25% stake), a 3rd unit for Cebu coal (150MW), another 3rd unit (150 MW) for Davao coal, and a 59MW solar power project (60% stake) in Negros occidental. By our estimate, AP currently has total installed capacity and attributable capacity of 3,194 MW and 2,422 MW, respectively. Assuming all ongoing and planned projects are completed, we estimate AP’s installed and attributable capacity will increase to 5,031 MW and 3,495 MW, respectively. – WealthSec