By James A. Loyola
Aboitiz Equity Ventures, Inc. (AEV) is planning to issue bonds worth up to P5 billion as the first tranche of its proposed P30 billion, three-year shelf registration program.
The firm had disclosed to the Philippine Stock Exchange that it plans to raise up to P30 billion from the issuance of bonds to fund future acquisitions and investments.
Philippine Rating Services Corp. (PhilRatings) said AEV is proposing a bond issue amounting to P3 billion with an oversubscription option of up to P2 billion.
For this, PhilRatings has assigned its highest Issue Credit Rating of PRS Aaa, with a Stable Outlook. Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
A Stable Outlook means the rating is likely to be maintained or to remain unchanged in the next 12 months.
PhilRatings said it gave AEV the highest rating because of the firm’s highly experienced management team, its sustainable profitability and strong liquidity, and its continuously growing asset and investment portfolio, supported by conservative leveraging.
AEV Chief Financial Officer Manuel R. Lozano said the company will be allotting P50 billion to P60 billion for capital expenditures this year, mainly for its power and water projects.
The company is currently pursuing renewable energy projects both locally and abroad. Overseas, they are exploring Indonesia, Vietnam, Malaysia, and Myanmar.
For its water business, AEV has started construction for its bulk water project in Davao City called Apo Agua worth P13 billion to P14 billion. Apo Agua will have a capacity of 347 million liters per day as well as a hydro-electric power plant that can produce up to 2.5 megawatts.
Lozano said the company will also be spending for the expansion of Aboitiz Land, Inc., which is planning township projects in Cebu and Davao.