ABOITIZ EQUITY VENTURES, Inc. (AEV) is looking to issue up to P10-billion fixed-rate retail bonds in the fourth quarter of the year.
In a disclosure to the exchange on Tuesday, AEV said it has applied for authorization from the Securities and Exchange Commission to launch the second tranche of its P30-billion bond program
The program was registered in June last year, from which P5-billion bonds were already issued and listed within the same month.
For the second tranche, AEV wants to issue a primary offering of up to P5-billion bonds, which will have an oversubscription option of up to P5 billion.
The target is to do the offering within the fourth quarter, but may be later depending on market conditions.
Proceeds from the planned issuance will be used to partially refinance the company’s maturing loans.
AEV has tapped BDO Capital & Investment Corp. and First Metro Investment Corp. as joint issue managers, and with BPI Capital Corp., China Bank Capital Corp. and SB Capital Investment Corp., as joint lead underwriters for the offering. BDO Unibank, Inc. – Trust and Investments Group will be the trustee.
Similar to last year’s P5-billion first tranche bonds, the second tranche bonds will be listed at the Philippine Dealing and Exchange Corp. (PDEx).
AEV currently has seven bond listings at PDEx as of Sept. 18, two of which are scheduled to mature within the year: P10.46-billion bonds on Nov. 6 and P6.2 billion bonds on Nov. 21.
The company posted a 55% earnings decline to P4 billion in the six months ending June. Its power business, which contributes the majority of AEV’s income, dropped 57% to P2.9 billion.
Shares in AEV at the stock exchange shed 85 centavos or 1.80% to close at P46.50 each on Tuesday. — Denise A. Valdez