AEV plans to issue notes denominated in US dollars

Published January 3, 2020, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Aboitiz Equity Ventures, Inc. (AEV), through wholly-owned subsidiary AEV International Pte. Ltd. (AEV International), is planning to issue US dollar-denominated Regulation S only senior unsecured notes.

Aboitiz Logo (via Bulletin)
Aboitiz Logo (via Bulletin)

In a disclosure to the Philippine stock Exchange, AEV said AEV International has appointed The Hongkong and Shanghai Banking Corporation Limited (HSBC) and Standard Chartered Bank as Joint Global Coordinators for the planned issuance.

It also named DBS Bank Ltd., HSBC, Mizuho Securities (Singapore) Pte. Ltd., MUFG Securities Asia (Singapore) Limited, and Standard Chartered Bank as Joint Lead Managers and Joint Bookrunners to arrange a series of fixed income investor meetings and conference calls in Hong Kong, Singapore, and London commencing on January 6, 2020.

“An offering of US dollar-denominated Regulation S only senior unsecured notes may follow, subject to market conditions. The Notes, if issued, are expected to be unconditionally and irrevocably guaranteed by AEV and unrated,” AEV said.
AEV reported that its net income for the first nine months of 2019 dipped 9 percent to ₱15.7 billion from the ₱17.3 billion posted during the same period last year due to lower power earnings.

In an a disclosure, AEV said it recognized non-recurring losses of ₱155 million, lower than the previous year’s ₱407 million, representing net foreign exchange and derivative losses.

Without these one-off losses, AEV’s core net income for the first nine months of 2019 was ₱15.9 billion, 10 percent lower from ₱17.7 billion year-on-year (YoY).

“Despite challenges in our power business, better operating performance in our non-power businesses provided resilience to our investment portfolio. As we fund our growth projects, we look to further broaden and strengthen our diversification in the Philippines and overseas,” said AEV President and Chief Executive Officer Erramon I. Aboitiz.