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Friday, March 29, 2024

Aboitiz Equity obtains SEC nod to sell P30 billion of fixed-rate bonds

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The Securities and Exchange Commission approved the P30-billion bond shelf registration of conglomerate Aboitiz Equity Ventures Inc.

The SEC in a meeting on May 30 rendered effective the company’s registration statement and issued a permit to Aboitiz Equity to sell P30 billion of fixed-rate bonds starting with an initial offering of P3 billion and with an oversubscription for another P2 billion.

Aboitiz Equity plans to use the proceeds of the bond sale to refinance the medium-term loan of wholly-owned subsidiary AEV International Pte. Ltd.

In case the oversubscription option is partly or not exercised during the offering period, the unissued bonds will remain under shelf registration and may be issued in tranches within three years from the effective date of the registration statement. 

Aboitiz Equity may issue a mix of Series A Bonds and Series B Bonds for the first tranche in scripless form and in minimum denominations of P50,000 each and in multiples of P10,0000 thereafter. 

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The Series A Bonds will mature in five years while the Series B Bonds will be due in 10 years. 

Aboitiz Equity has the option to redeem in advance any series of the bonds in whole. 

The conglomerate tapped BDO Capital & Investment Corp. and First Metro Investment Corp. as joint issue managers, joint lead underwriters and joint book runners of the bond offering. 

The company plans to list the first tranche bonds on Philippine Dealing & Exchange Corp.

Aboitiz Equity last tapped the local bond market in 2015, when it raised P24 billion worth of fixed-rate bonds that would mature in October 2020, 2022 and 2027.

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

Aboitiz Equity is allotting at least 63 percent or P51 billion for the expansion of the power-related business.

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

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