Conglomerate Aboitiz Equity Ventures Inc. said Tuesday it will issue up to P10 billion in fixed-rate bonds to refinance maturing debt.
AEV said in a disclosure to the stock exchange Tuesday the planned bond offering would be the second issuance under the company’s P30-billion bond shelf registration approved by the Securities and Exchange Commission in 2019.
The bonds will consist of a primary offering of fixed-rate retail bonds of up to P5 billion, with an oversubscription option for another P5 billion.
The company plans to offer the bonds to the public in the fourth quarter or at a later date, subject to market conditions.
“AEV intends to use the proceeds from the second tranche bonds to partially refinance maturing obligations from its previously issued bonds,” the conglomerate said.
The company hired BDO Capital & Investment Corp., BPI Capital Corp., First Metro Investment Corp., China Bank Capital Corp. and SB Capital Investment Corp., as joint lead underwriters for the offering.
The bonds will be listed with the Philippine Dealing and Exchange Corp.
AEV has P6.2 billion seven-year bonds and another P10.46 billion five-year bonds maturing in November 2020.
AEV recorded a net income of P4 billion in the first half, down 55 percent from P9 billion in the same period last year, reflecting the impact of the lower income contribution of its largest business unit, Aboitiz Power Corp.
Power accounted for 49 percent of the total income contributions from AEV’s strategic business units. This was followed by banking and financial services (39 percent), food (14 percent), infrastructure (-1 percent), and land (-1 percent).
AEV said that despite the weak first-half performance amid the business disruption caused by the pandemic, the economy was expected to perform better in the second half as the country slowly opens up and adapts to the new normal.