Aboitiz Group rolls out P17.45-B bond sale
MANILA -Power, banking and food conglomerate Aboitiz Equity Ventures Inc. rolled out a P17.45- billion bond sale this week, its second such offer under a P30-billion debt program that was meant to boost its balance sheet to help bankroll major expansion plans.
Aboitiz Equity said the selling period started last Sept. 7 and will run through Sept. 13 this year.
The base offer was P11 billion while an oversubscription option for P6.45 billion was provided in case of strong demand. Aboitiz Equity said the debt paper will be issued on Sept. 21 this year.
The company tapped BDO Capital & Investment Corp. and First Metro Investment Corp. as joint issue managers for the sale.
BDO Capital, BPI Capital Corp., China Bank Capital Corp. First Metro Investment Corp., SB Capital Investment Corp. and Union Bank of the Philippines would act as joint bookrunners, and joint lead underwriters. BDO Unibank Inc.-Trust and Investments Group will serve as trustee; and Philippine Depository & Trust Corp. will serve as the registrar and paying agent.
Aboitiz Equity’s core businesses are Aboitiz Power Corp. Union Bank of the Philippines, Pilmico Foods Corp., Aboitiz Land and Aboitiz InfraCapital.
It recently ventured into airports after sealing a deal with Megawide Construction Corp. and India’s GMR Infrastructure to take over the Mactan Cebu International Airport project.
READ: Aboitiz Group eyes 3 new airport deals this year
News reports earlier this week also showed a consortium of conglomerates that include Aboitiz Equity purchased bid documents for the P170-billion modernization and operations of the Ninoy Aquino International Airport in Manila.
Aboitiz Equity earlier announced that foreign exchange losses pulled down profits in the first semester of 2023 by 11 percent to P10.5 billion.
READ: Aboitiz Group profits down 11% in first half
But core earnings, which removes the impact of nonrecurring items, rose 23 percent to P11.1 billion from January to June compared to the same period in 2022.
Power accounted for 72 percent of income contributions during the first semester while financial services accounted for 25 percent. The rest came from real estate, food and infrastructure.
