Aboitiz Group set to issue P25-B bond notes

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Aboitiz Equity Ventures Inc. (AEV) has disclosed plans for a fixed-rate retail bond offer to raise P25 billion to finance infrastructure, transport and utilities-related projects.

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The company, in a disclosure to the Philippine Stock Exchange, said the AEV board of directors has approved the P25 billion bond offer, including the oversubscription option, which will be opened to the public in the second half of this year.

“AEV will use the proceeds of the bonds to finance planned acquisitions, future investments and other general corporate requirements,” the company said.

The bonds will be registered under the Securities Regulation Code and will be listed on the Philippine Dealing and Exchange Corp. after the issue date. Final terms and conditions are still subject to the management’s approval.

The company recently joined the bidding for P123-billion Laguna Lakeshore Expressway Dike project under the Team Trident or Trident Infrastructure and Development Corp., a consortium of quad-partnership of AEV, Ayala Land Inc., SM Prime Holdings Inc., and Megaworld Corp.

It is also considering bidding for the Light Rail Transit 2 operation and maintenance project.

The company is studying various public-private partnership (PPP) projects, which consist of bundled airport projects, including the P20.26-billion Bacolod-Silay Airport and P30.40-billion Iloilo Airport, the P2.34 -billion New Bohol Panglao Airport, P14.62-billion Laguindingan Airport and the P40.57-billion Davao Airport.

The company, through its joint venture firm Apo Agua Infrastructura Inc., recently signed a P10-billion supply deal of 300 million liters per day of treated bulk water with the Davao City Water District.

AEV’s net income last year declined by 13 percent to P18.4 billion from P21 billion a year ago on slower earnings of its power and banking segments, which take up bulk of its revenues.

Incorporated in 1989, AEV is the holding company of the Aboitiz Group of Companies. It is engaged in power distribution, power generation and retail of electricity (AboitizPower); financial services and portfolio investments (UnionBank); food manufacturing (Pilmico Foods); and real estate (AboitizLand).

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