Aboitiz Equity Ventures Inc. plans to issue up to P10 billion in fixed rate bonds in the first half of 2020.
AEV said in a disclosure to the stock exchange its board of directors approved the bond issue representing the second tranche from a P30-billion bond shelf registration program earlier approved by the Securities and Exchange Commission.
AEV chief finance officer Manuel Lozano said the company would use net proceeds the offering to fund infrastructure, food and planned common towers projects.
The conglomerate is expanding its food business with the construction of a meat processing plant and the extension of the feed milling business.
It has lined up several infrastructure projects, including the 330-million-liter-per-day Apo-Agua bulk water project in Davao and the planned rollout of telecom towers starting in 2020.
Lozano said the bonds might be issued with a tenor of five years.
The company appointed BDO Capital & Investment Corp. and First Metro Investment Corp. as joint issue managers, joint bookrunners, and joint lead underwriters for the second tranche bonds. The bonds will be listed with Philippine Dealing and Exchange Corp. (PDEx).
AEV in June issued the first tranche worth of P5 billion in two series—Series “A” with a fixed interest rate of 6.0157 percent per annum maturing on 2024 and Series “B” with a fixed interest rate of 6.3210 percent per annum maturing on 2029.
AEV is one of the country’s largest conglomerates with investments in power generation, distribution and retail electricity supply, financial services, food manufacturing; real estate and infrastructure.
AEV posted a net income of P15.7 billion in the first nine months, down nine percent from ₱17.3 billion year-on-year, due to the lower income contribution of the power and food businesses.
“Despite challenges in our power business, better operating performance in our non-power businesses provided resilience to our investment portfolio. As we fund our growth projects, we look to further broaden and strengthen our diversification in the Philippines and overseas,” said AEV president and chief executive Erramon Aboitiz.
