AEV aims to raise P10B via sale of retail bonds

Power-based conglomerate Aboitiz Equity Ventures is planning to raise as much as P10 billion through the sale of long-term retail bonds in the last quarter of 2013.

In a disclosure to the Philippine Stock Exchange Friday, AEV said its board had authorized the sale of retail bonds with tenors of seven and 10 years.

“The proceeds of the bonds issuance will be used by AEV to finance its planned investments and for other general corporate purposes,” the company said in the disclosure.

Local investment house First Metro Investment Corp. was mandated as the issue manager for the bond issuance, which would be registered under the Securities Regulation Code.

AEV grew its first-semester net profit by 1 percent year-on-year to P11.9 billion, with the rise of its earnings from its banking and food businesses making up for the slack in profit from the power business.

Excluding extraordinary items, AEV’s core net income for the first six months amounted to P11.7 billion, 3.5 percent higher higher than a year ago.

The conglomerate’s flagship business is power through Aboitiz Power Corp. but it is also in banking (Union Bank of the Philippines), food manufacturing (Pilmico Foods Corp.) and real estate (Aboitiz Land Inc.).

As of the end of June, AEV’s consolidated assets amounted to P193.9 billion versus consolidated liabilities of P83.4 billion, giving it the capability to fund expansion plans.

AEV is among the several corporations braving the capital market to take advantage of ample domestic liquidity and the window of opportunity arising from the US Federal Reserve’s deferral of its monetary stimulus withdrawal.