AEV board clears P17.5-B bond issuance

AEV board clears P17.5-B bond issuance

ABOITIZ Equity Ventures, Inc.’s (AEV) board of directors on Wednesday approved the company’s issuance of up to P17.45 billion for its second tranche of fixed-rate retail bonds, inclusive of an oversubscription option.

It said, subject to market conditions, the bonds are expected to be offered to the public in the third quarter of this year and will be listed with the Philippine Dealing & Exchange Corp.

In a regulatory filing, the company said the bonds would come from its P30-billion shelf-registration program, which was approved by the Securities Exchange Commission in 2022.

Last year, the company issued the first tranche of its fixed-rate retail bonds together with the final tranche of its 2019 bonds amounting to about P20 billion.

Its board delegated the company’s management to appoint an issue manager, bookrunner, underwriter, and trustee of the issuance. Its management will also approve the final interest rate, offer price, tenors, and other terms and conditions of the second tranche bonds.

The company has yet to disclose the use of proceeds from the issuance.

During the first quarter, AEV reported an attributable net income of P4.01 billion, up 1.8% from P3.98 billion in the same period last year.

AEV’s core businesses, conducted through its subsidiaries and affiliates, are grouped into five main categories: power generation, distribution and retail electricity supply; financial services; food manufacturing; real estate; and infrastructure.

On Wednesday its shares declined by 0.91% or 50 centavos to P54.50 apiece. — A. H. Halili