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AEV to issue P30-B retail bonds

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ERRAMON I. ABOITIZ, Aboitiz Equity Ventures president and chief executive officer

By Arra B. Francia, Reporter

ABOITIZ Equity Ventures, Inc. (AEV) will be issuing up to P30 billion worth of retail bonds to raise money that would finance future acquisitions and investments.

In a disclosure to the stock exchange on Wednesday, the listed power conglomerate said its board of directors has approved the issuance of the fixed rate retail bonds. AEV will file a shelf registration with the Securities and Exchange Commission for the offering.

The company plans to conduct the issuance in one or more tranches, depending on market conditions.

“AEV will use the proceeds of the bonds to finance planned acquisitions, future investments, and other general corporate requirements,” the company said.

The bonds will be listed at the Philippine Dealing and Exchange Corp. (PDEx) upon issuance.




The last time AEV tapped the local bond market was in 2015, when it raised P24 billion worth of fixed-rate bonds that will mature in October 2020, 2022, and 2027, with yields of 4.4722%, 5.0056%, and 6.0169%, respectively.

AEV’s latest acquisition is Asia-Pacific animal feeds manufacturer Gold Coin Management Holdings, Ltd., which it plans to integrate with agri-business unit Pilmico Foods Corp. The company plans to invest up to $200 million into Gold Coin within the next two to three years to support its expansion.

AEV Chief Financial Officer Manuel R. Lozano said the company will be spending between P50-60 billion in capital expenditures this year, bulk of which will go to power and water projects.

The company is currently pursuing more renewable energy projects both locally and abroad. Overseas, Mr. Lozano said they are exploring Indonesia, Vietnam, Malaysia, and Myanmar.

For its water business, AEV has started construction for its bulk water project in Davao City called Apo Agua worth P13-14 billion last year. Apo Agua will have a capacity of 347 million liters per day, making it the largest bulk water project in the country. The water facility will have its own hydro-electric power plant that can produce up to 2.5 megawatts.

Mr. Lozano said the company will also be spending for the expansion of AboitizLand, Inc., which is planning township projects in Cebu and Davao.

Aside from this bond offering, AEV is also expected to close a $579-million loan from several banks in the first quarter as part of its fund-raising efforts for the year. The loan will be used to finance its acquisition of GNPower Mariveles Coal Plant Ltd. Co. and GNPower Dinginin Ltd. Co. from the Ayala group.

AEV’s net income attributable to the parent went up nine percent to P17.3 billion in the first nine months of 2018, following a 21% surge in gross revenues to P135.25 billion.

Shares in AEV were unchanged at P64 each at the stock exchange on Wednesday.

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