Aboitiz seeks SEC nod forP5-B bond issuance
Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Mon, 01 Apr 2019 16:22:20 +0000
ABOITIZ Equity Ventures Inc. (AEV) is seeking the approval of the Securities and Exchange Commission (SEC) for a planned P5-billion fixed-rate bond issuance.
The bonds — the first tranche of the firm’s P30-billion shelf registration program — will have a base size of P3 billion and an oversubscription allotment of up to P2 billion. It will be listed on the Philippine Dealing Exchange within the first half of the year.
Proceeds will be used for the refinancing plan of the medium-term loan of wholly owned subsidiary AEV International Pte. Ltd.
BDO Capital and Investment Corp. and First Metro Investment Corp. are the joint issue managers, bookrunners and lead underwriters for the transaction.
Last December, AEV announced that it would spend P60 billion in 2019 to fund several projects, the bulk of which for those of its power units and the rest for its other subsidiaries.
These include the Aboitiz group’s flagship project, the P12.6-billion Apo Agua bulk water project in Davao City. This project aims to deliver 300 million liters of potable water to the city’s residents daily.
Construction began last November, with commercial operations targeted in 2021.
The company also eyed more projects for its food and power businesses in Vietnam, Indonesia, Malaysia and Myanmar.
AEV’s consolidated net income rose by 3 percent to P22.2 billion last year from P21.6 billion in 2017. Its power business contributed 73 percent of the amount, followed by financial services at 16 percent, food at 7 percent, property at 3 percent and infrastructure at 1 percent.
Consolidated net profit for the first quarter, however, declined by 14 percent to P4.9 billion from P5.7 billion in the same period last year.
Shares of AEV rose by 85 centavos or 1.44 percent to finish at P59.80 each on Monday.
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