By Jenniffer B. Austria

The Securities and Exchange Commission yesterday approved the P3-billion fixed rate bond offering of Aboitiz Power Corp., the power generation arm of Cebu-based conglomerate Aboitiz Equity Ventures Inc.

In a filing with the stock exchange, Aboitiz Power said it would issue P1.5 billion in fixed rate bonds and an additional amount of P1.5 billion to cover any oversubscription.

Aboitiz Power plans to use proceeds from the bond issue to partially finance the 40-percent down payment of Aboitiz Power?s acquisition of the Tiwi-Makban geothermal facilities.

AP Renewables Inc., an affiliate of Aboitiz Power, in July won the bidding for the government?s 747.5-megawatt Tiwi-MakBan geothermal facilities in the provinces of Albay, Laguna and Batangas, with an offer of $446.9 million.

The Tiwi and MakBan facilities were first commissioned in 1979.

The company is raising money to finance ventures into green field projects and the acquisition of more power assets from the government.

Aboitiz Power in December said it had availed of the P3.89-billion notes facility to fund acquisitions.

The facility is an upsize from the original amount of P3 billion.

The notes facility agreement was arranged by BDO Capital and Investments Corp, BPI Capital Corp., First Metro Investment Corp. and ING Bank N.V. Manila Branch as joint lead managers.

The company earlier said it would bid for the 192.5-MW Palinpinon geothermal power plant that the government?s Power Sector Assets and Liabilities Management Corp. had lined up for privatization this year.