outbrain
Close  

AEV raising funds via retail bonds offering

/ 05:32 AM January 31, 2019

Conglomerate Aboitiz Equity Ventures Inc. plans to raise up to P30 billion from a fresh bond offering, mostly to fund acquisitions, future investment and other corporate requirements.

In a disclosure to the Philippine Stock Exchange yesterday, AEV said its board had approved the issuance of fixed-rate peso-denominated retail bonds.

ADVERTISEMENT

This will mark AEV’s return to the local bond market for the first time since 2015.

The bonds were planned to be issued in one or two tranches, depending on market conditions. The bonds are expected to be offered to the general public in 2019.

FEATURED STORIES

Based on the disclosure, the bonds will be registered under the shelf registration program of the Securities and Exchange Commission, which gives issuers a three-year window to register and sell under the same prospectus and other regulatory filing requirements a certain volume of securities that may not all be used up right away.

AEV is also planning to list the proposed bonds with  fixed income trading platform Philippine Dealing and Exchange Corp.

The board of directors delegated to management the final determination of the offer price, tenors, and other terms and conditions of the bonds.

Proceeds are expected to fund part of AEV’s capital spending budget which may reach P50 billion this year, mostly for power, water and property businesses.

AEV is also open to tapping the offshore bond market in the future if its international businesses—like power and Gold Coin—would grow faster.

Last July, the group signed a $334-million deal to acquire a 75-percent stake in Singapore-based animal feeds manufacturer Gold Coin Management Holdings Ltd., a major producer of animal feeds and operator of 20 livestock and aqua feed mills across 11 countries in Asia. This is the largest offshore investment made by AEV’s Pilmico International in Asia Pacific to date.

For the power projects, AEV is looking at expanding within the region and is now in talks for opportunities in Indonesia, Malaysia, Vietnam and Myanmar. In Indonesia, the group is looking at various types of power businesses.  —DORIS DUMLAO-ABADILLA

ADVERTISEMENT

Subscribe to Inquirer Business Newsletter
Read Next
EDITORS' PICK
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Aboitiz Equity Ventures Inc., retail bonds offering
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2020 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.