Aboitiz Equity Ventures Gets SEC Okay for P30 Billion Fixed-Rate Bond Offering

The company will issue the first tranche of the bonds worth P3 billion.
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ILLUSTRATOR Roland Mae Tanglao

The Securities and Exchange Commission (SEC) has approved Aboitiz Equity Ventures, Inc. (AEV)'s planned public offering of fixed-rate bonds amounting to P30 billion under shelf registration.

AEV intends to initially issue the first tranche of the bonds worth as much as P3 billion, with an oversubscription option for a maximum of P2 billion, based on the registration statement, prospectus and other related documents submitted to the SEC.

The company expects to net about P4.94 billion from the initial tranche, assuming the full exercise of the oversubscription option. It plans to use the proceeds for the refinancing of the medium-term loan of its wholly owned subsidiary, AEV International Pte. Ltd.

In case the oversubscription option is partly or not exercised during the offer period, the SEC said the unissued bonds will remain under shelf registration and may be issued in tranches within three years from the effective date of the registration statement.

For the first tranche, AEV may issue a mix of Series A Bonds and Series B Bonds, in scripless form in minimum denominations of P50,000 each and in multiples of P10,0000 thereafter.

The Series A Bonds will mature in five years while the Series B Bonds will be due in 10 years. AEV shall have the option, but not the obligation, to redeem in advance any series in whole. 

AEV is the publicly listed holding and management company of the Aboitiz Group, which has interests in power generation and distribution, financial services, food manufacturing, infrastructure and real estate.

AEV mandated BDO Capital & Investment Corporation and First Metro Investment Corporation as joint issue managers, joint lead underwriters, and joint bookrunners of the bond offering.  

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Paul John Caña
Associate Editor, Esquire Philippines
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