ABOITIZ Equity Ventures, Inc. (AEV) said it would fully redeem the outstanding Series B of its fixed-rate retail bonds issued in 2015 a year ahead of its maturity date.

The company will prepay the bonds for P8.467 billion at an early redemption price of 100.5% of its face value on Aug. 6 this year.

“The repayment of the bonds is part of our continuing efforts to reduce costs and further improve profitability for all of our stakeholders,” AEV Chief Financial Officer Manuel R. Lozano said in a statement on Tuesday.

The seven-year Series B bonds with a fixed interest rate of 5.0056% were listed at the Philippine Dealing & Exchange Corp. on Aug. 6 in 2015. It was said to be “crucial for AEV’s continued overall growth.”

Majority of the proceeds were used to finance the company’s cement venture with the acquisition of Lafarge assets in the Philippines via a joint venture with CRH Plc.

The Series B bonds were part of the first tranche of the company’s P25-billion debt securities program, which was issued in three series including Series A with a fixed rate of 4.4722% per annum and matured in 2020. It also includes the 12-year Series C bonds with a fixed rate of 6.0169%, which matures in 2027.

AEV said it would further refinance maturing debt and prepay existing higher-cost debt this year.

The company is now coordinating with BPI Asset Management and Trust Corp. and the Philippine Depository and Trust Corp. for notices and computation of the amounts due to bondholders of the 2015 Series B bonds.

On Tuesday, shares of AEV at the stock exchange went down by 0.59% or by 25 centavos to close at P42.05 apiece. — Keren Concepcion G. Valmonte