ABOITIZ Equity Ventures, Inc. (AEV) received the approval of the Philippine Dealing and Exchange Corp. or PDEx to list its P20-billion fixed-rate retail bonds, the firm said on Tuesday.
“The PDEx approval paves the way for the secondary market trading of the Series A bonds, with a fixed interest rate of 6.8725% per annum maturing in 2026, and the Series B bonds with a fixed interest rate of 7.5321%% per annum maturing in 2029,” the company said in a disclosure.
The offer will have a base amount of P8 billion, which comprises P7.45 billion from the final tranche of the company’s P30 billion shelf registration in 2019, and P550 million from the first tranche of its P30-billion shelf registration in 2022.
The holding firm will also offer an oversubscription of up to P12 billion, which is part of the 2022 shelf-registration program.
The P20-billion retail bonds are set for issuance on Dec. 7. The offer period was scheduled from Nov. 22 to 28.
According to a press release from the Securities and Exchange Commission, the company expects proceeds from the offer to amount to P19.76 billion if the oversubscription option is fully exercised.
The company intends to use the funds for the acquisition of GMR-Megawide Cebu Airport Corp. by its subsidiary Aboitiz InfraCapital, Inc. A portion of the proceeds will refinance maturing debt.
Philippine Rating Services Corp. previously gave the bond issuance the highest issue credit rating of PRS Aaa with a stable outlook. The rating means the issuance is of the highest quality, has minimal credit risk, and the obligor can meet its financial commitment. A stable outlook means the rating is likely to be maintained in the next 12 months.
On the stock market on Wednesday, shares in AEV declined by P1.65 or 2.98% to P53.80 apiece. — Justine Irish D. Tabile