AEV set to raise P10B from bond issue
Conglomerate Aboitiz Equity Ventures Inc. (AEV) plans to raise as much as P10 billion from a new local bond offering, proceeds of which will be used to retire older and costlier borrowings.
AEV filed an application with the Securities and Exchange Commission (SEC) to issue the second tranche of fixed-rate retail bonds from its P30-billion shelf registration program, which was registered with the SEC in mid-2019.
The second tranche will consist of a primary offering of fixed-rate retail bonds up to P5 billion in principal amount, with an oversubscription option of up to P5 billion, AEV disclosed to the Philippine Stock Exchange on Tuesday.
The bonds are expected to be offered to the general public during the fourth quarter of 2020, or at a later date, subject to market conditions.
“AEV intends to use the proceeds from the second tranche bonds to partially refinance maturing obligations from its previously issued bonds,” the disclosure said.
For the proposed offering, AEV has appointed BDO Capital & Investment Corp. and First Metro Investment Corp. as joint issue managers. BDO Capital & Investment Corp., BPI Capital Corp., First Metro Investment Corp., China Bank Capital Corp. and SB Capital Investment Corp. are joint lead underwriters. BDO Unibank Inc.-Trust and Investments Group is the trustee.
AEV intends to list the bonds on the local fixed income trading platform Philippine Dealing and Exchange Corp.
Valued by the stock market at P266.6 billion, AEV has interests in power generation and distribution, banking, food, infrastructure and real estate businesses. INQ
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