Aboitiz Equity registers bond program worth P30 billion with SEC

Conglomerate Aboitiz Equity Ventures Inc. said it filed with the Securities and Exchange Commission a P30-billion retail-bond shelf registration program.

AEV said in a disclosure to the stock exchange it would likely offer to the public the first tranche of the fixed-retail bond offering equivalent to P3 billion, with an oversubscription option of up to P2 billion, in the first half of 2019.

“Subsequent tranches of the bonds may be issued by AEV as and when the need arises and subject to market conditions at the time,” AEV said.

The company plans to use the net proceeds from the first tranche of the bonds as part of the refinancing plan for the medium-term loan of AEV International Pte. Ltd., a wholly-owned subsidiary of AEV.

The company appointed BDO Capital & Investment Corp. and First Metro Investment Corp. as the joint issue managers and underwriters of the bond offering.

AEV plans to list the bonds with Philippine Dealing and Exchange Corp.

AEV International last year entered into a $338-million loan agreement with four foreign banks to finance the acquisition of a controlling stake in Gold Coin Management Holdings Limited, Asia’s largest privately-owned agribusiness company.

AEV has earmarked P81 billion in capital expenditures this year, up from the actual spending of P49 billion in 2018.

The conglomerate is allocating at least 63 percent, or about P51 billion, to finance the expansion of the power-related  business.

It is earmarking the balance of 37 percent or P30 billion for the group’s non-power generating businesses, including real estate, cement, banking, bulk water project, food and infrastructure.

The last time AEV raised capital from the local bond market was in 2015 when it raised P24 billion worth of fixed-rate bonds maturing in October 2020, 2022, and 2027.

Share price of AEV on Monday rose P1.4 percent to P59.80.

Topics: Aboitiz Equity Ventures Inc. , Securities and Exchange Commission , BDO Capital & Investment Corp.
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