AEV sets P30-B new debt program

Conglomerate Aboitiz Equity Ventures (AEV) wants more room to borrow from the domestic bond market by seeking a P30-billion replenishment of its bond shelf registration with the Securities and Exchange Commission. This is in line with the plan of AEV to return to the local retail bond market in the fourth quarter of this year to raise P12 billion, the holding firm said in a disclosure to the Philippine Stock Exchange on Friday. Of the P30-billion existing bond shelf approved by corporate regulators in 2019, only P7.45 billion remains unissued to date.  As such, AEV obtained the approval of its board to apply for a new shelf registration program for the issuance of fixed-rate peso-denominated retail bonds worth up to P30 billion. Under the shelf registration window of the SEC, securities to be issued in tranches may be registered for an offering to be made on a continuous or delayed basis for a period not exceeding three years. AEV plans to use up the remaining amount in its old bond shelf registration in combination with the first tranche of securities under the proposed new bond shelf amounting to as much as P4.55 billion.  The total borrowing will thus reach P12 billion. AEV has appointed BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., and First Metro Investment Corp. as joint issue managers, joint bookrunners, and joint lead underwriters for its next debt market foray. The board has authorized AEV’s management to determine the interest rate, offer price, tenors, and other terms and conditions of the bonds. “Subject to market conditions, the bonds are expected to be offered to the general public during the fourth quarter of 2022 and shall be listed with the Philippine Dealing and Exchange Corp.  (PDEx) as and when issued,” the disclosure said.