AEV gets approval to issue P20 billion bonds

MANILA, Philippines — Aboitiz Equity Ventures (AEV), the listed conglomerate of the Aboitiz Group, has received the approval of the Philippine Dealing & Exchange Corp. (PDEx) for its plan to issue P20 billion in fixed-rate retail bonds.

Proceeds of the bonds will be used to boost the company’s war chest as it sets its sight on further growth and expansion, particularly its foray into airport operations.

AEV also plans to use the proceeds to partially finance the acquisition of GMR-Megawide Cebu Airport Corp. by its wholly owned subsidiary Aboitiz InfraCapital.

The P20 billion fixed-rate retail bonds, including oversubscription, will consist of a base offer of P8 billion and an oversubscription option of P12 billion.

Of the amount, P7.45 billion will represent the fourth and final tranche of AEV’s P30-billion peso-denominated fixed-rate retail bonds registered under the shelf registration program of the Securities and Exchange Commission in 2019.

The balance of P550 million, meanwhile, comprises the first tranche of AEV’s P30 billion peso-denominated fixed-rate retail bonds filed under the SEC’s shelf registration for 2022.

PDEx, the country’s fixed income exchange, has approved the deal, which paves the way for the secondary market trading ofAEV’s Series “A” Bonds, with a fixed interest rate of 6.8725 percent per annum maturing in 2026, and Series “B” bonds with a fixed interest rate of 7.5321 percent per annum maturing in 2029.

The company tapped BDO Capital, BPI Capital, China Bank Capital, and First Metro Investment Corp. as joint issue managers, lead underwriters, and bookrunners for the offer.

AEV reported a net income of P21.4 billion in the nine months to September, up from P19.5 billion.

Third quarter net income jumped by 57 percent to P9.6 billion.

Excluding non-recurring gains of P2.6 billion, the company’s core net income for the third quarter would have amounted to P7 billion, 20 percent higher than the previous year.

AEV’s businesses include power through AboitizPower; banking through UnionBank; infrastructure through AboitizInfra; real estate through AboitizLand and food through Pilmico Foods Corp., Pilmico Animal Nutrition Corp. and Pilmico International Pte. Ltd. – which includes Gold Coin Management Holdings Pte. Ltd.