Aboitiz Equity cleared to issue P30 B bonds

The Securities and Exchange Commission (SEC) has approved the shelf registration of Aboitiz Equity Ventures Inc. (AEV) for P30 billion worth of fixed rate bonds.

In its meeting on May 30, the commission en banc approved the company’s proposed issuance of bonds.

AEV intends to initially issue bonds worth as much as P3 billion with an oversubscription option for a maximum of P2 billion.

The company expects to raise P4.9 billion from the bond sale, proceeds of which will be used for the refinancing of the medium-term loan of its wholly owned subsidiary AEV International Pte. Ltd.

The Series A bonds will mature in five years, while the Series B bonds will be due in 10 years. AEV shall have the option, but not the obligation, to redeem in advance any series in whole.

AEV has mandated BDO Capital & Investment Corp. and First Metro Investment Corp. as joint issue managers, joint lead underwriters, and joint bookrunners of the bond offering.

The company intends to list the bonds on the Philippine Dealing & Exchange Corp.

The exact timing of the issuance will depend on market conditions.

AEV is the Cebu based conglomerate of the Aboitiz family. It recorded a consolidated net income of P3.5 billion for the first quarter, down 27 percent from the same period last year.

Consolidated earnings before interest, tax, depreciation and amortization reached P12.4 billion, 11 percent lower year-on-year.

Power accounted for 71 percent of the total income contributions, followed by banking and financial services (27 percent), food (four percent), infrastructure (down one percent) and land (down one percent).