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Aboitiz Equity to prepay P1.8-billion worth of bonds

Conglomerate Aboitiz Equity Ventures Inc. said Friday it will repay P1.8-billion worth of bonds two years ahead of maturity.

AEV said in a disclosure to the stock exchange it would exercise the optional redemption of the 10-year fixed rate retail bonds issued on Nov. 21, 2013.

“Through the optional redemption, AEV will prepay the optional redemption price of 101 percent of the face value of the 2013 10-year bonds, in the amount of P1.8 billion,” the conglomerate said.

The company said it would use cash to prepay the bonds.

AEV said it was coordinating with Metrobank Trust Banking Group and Philippine Depository and Trust Corp., the trustee registrar and paying agent, respectively, the corresponding notices and computation of the amounts due to the bondholders.

The conglomerate last month agreed to sell a 25.01-percent stake in power generation subsidiary Aboitiz Power Corp. to Japan-based JERA Asia Pte. Ltd for $1.46 billion.

The transaction, which is still subject to the necessary customary approvals, will reduce AEV’s ownership in Aboitiz Power to 52 percent.

AEV raised P10 billion in August from the issuance of four-year and seven-year fixed-rate bonds. The bonds carry a coupon rate of 3.2977 percent and 4.1018 percent, respectively.

The bonds were issued from the company’s P30-billion bond shelf-registration program approved by the Securities and Exchange Commission in 2019.

The net proceeds from the bond offering will be used to partially refinance maturing debt and finance future funding requirements of Aboitiz Infracapital for its telecom tower project.

AEV is primarily engaged in power generation, banking and financial services, real estate, infrastructure and food manufacturing.

The group earmarked P48 billion for 2021 capital expenditures.

The share price of AEV rose 2.3 percent Friday to P48.45.

Topics: Aboitiz Equity Ventures Inc. , Metrobank Trust Banking Group , Philippine Depository and Trust Corp.
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