ABOITIZ Equity Ventures, Inc. (AEV) has obtained approval from the Securities and Exchange Commission (SEC) to offer to the public P30 billion worth of fixed-rate bonds.
“In its meeting on May 30, the Commission En Banc rendered effective the company’s registration statement and approved the issuance of the corresponding permit to offer securities for sale pending the submission of the final prospectus and duly executed underwriting, trust and registry and paying agency agreements,” the SEC said in a statement Friday.
The listed conglomerate announced in January the plan to issue retail bonds to raise money for planned acquisitions and investments.
It said in April the first tranche of the offer will involve the issuance of bonds worth P3 billion with an oversubscription option of up to P2 billion. The bonds will be listed at the Philippine Dealing & Exchange Corp.
If AEV maximizes the oversubscription option, it could generate proceeds of P4.94 billion from the first tranche bonds. If not, 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.”
AEV earlier said proceeds from the first tranche will help refinance the medium-term debt of wholly-owned subsidiary AEV International Pte. Ltd.
AEV International has a $338-million loan taken on to help AEV subsidiary Pilmico International Pte. Ltd. acquire a 75% interest in Gold Coin Management Holdings Ltd.
BDO Capital & Investment Corp. and First Metro Investment Corp. were tapped by AEV to be the joint issue managers, joint underwriters and joint lead bookrunners for the offering.
AEV’s consolidated net profit fell 27% to P3.5 billion in the first quarter due non-recurring losses. It has an P81 billion capital expenditure budget this year, the bulk of which will be dedicated to power projects. — Denise A. Valdez