ABOITIZ Equity Ventures Inc. (AEV) said it would sell P12 billion in bonds to partially finance the acquisition of the Mactan Cebu International Airport venture from Megawide Construction Corp. and GMR Infrastructure.
In a disclosure to the Philippine Stock Exchange, AEV said it filed an application with the Securities and Exchange Commission (SEC) to issue the bonds, inclusive of the oversubscription option.
The bond issue is the fourth and final tranche of fixed-rate bonds amounting to up to P7.45 billion from its P30-billion shelf registration program, which was approved by the SEC, and the first tranche of fixed-rate bonds amounting to up to P4.55 billion, assuming the oversubscription option is exercised, from its new shelf registration program amounting to P30 billion.
"The proceeds from the 2022 bonds are intended to partially fund AEV's equity contribution to its wholly-owned subsidiary, Aboitiz InfraCapital Inc., which will use the amount to acquire interest in GMR-Megawide Cebu Airport Corporation and the repayment," said AEV.
Subject to market conditions, the 2022 bonds are expected to be offered to the general public during the fourth quarter of 2022.
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