Aboitiz power firm mulls P10-B bond sale

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

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

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

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

AEV grew its first-semester net profit by 1 percent year-on-year to P11.9 billion as higher earnings from its banking and food businesses made up for the slack in profits out of the power business. Excluding extraordinary items, AEV’s core net income for the first six months amounted to P11.7 billion, 3.5 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 end-June, AEV’s consolidated assets amounted to P193.9 billion versus consolidated liabilities of P83.4 billion, giving it the capability of fund expansion plans.

AEV is among the many corporate issues 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.