Conglomerate Aboitiz Equity Ventures Inc. said Tuesday it obtained the Securities and Exchange Commission’s approval for its planned P10-billion bond offering.
AEV said in a disclosure to the stock exchange the bonds would be issued from the company’s P30-billion bond-shelf registration program which was approved by the SEC in 2019.
Under the plan, AEV will issue up to P5 billion worth of fixed-rate bonds with an oversubscription option for another P5 billion. The bonds will have tenors of four years, with interest rate of 3.2977 percent per annum and seven years with interest rate of 4.1018 percent per annum.
Net proceeds from the fund raising activity will be used to finance the early redemption of certain outstanding bonds of the company, finance funding requirements of Aboitiz InfraCapital Inc. and other general corporate purposes.
The offer period will be from July 26 to 30, while the issue date is Aug. 9. The bonds will be listed under the Philippine Dealing and Exchange Corp.
AEV tapped BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., SB Capital Investment Corp. and First Metro Investment Corp. as joint issue managers bookrunners and lead underwriters for the offering.
The bonds received the highest possible rating of “PRS Aaa” from the Philippine Rating Services Corp.
AEV has major investments in power, banking and financial services, food, infrastructure and property. The group earmarked P48 billion in capital expenditures this year, or 69 percent higher than P29 billion it spent in 2020.
Majority of this year’s programmed spending was earmarked for Aboitiz Power Corp. which is completing GNPower Dinginin and battery energy storage projects.
The share price of AEV rose 2.44 percent Tuesday to close at P39.95.