Aboitiz Equity Ventures, Inc. is planning to raise up to P10 billion from a proposed bond issue as part of its three-year shelf registration program amounting to P30 billion.
The planned offering will have a base issue size of up to P5 billion, with an oversubscription option of up to P5 billion. AEV has so far issued P5.0 billion of the P30 billion worth of bonds.
Philippine Rating Services Corporation (PhilRatings) has assigned its highest Issue Credit Rating of PRS Aaa, with a Stable Outlook for the planned issuance. It also maintained the Issue Credit Rating of PRS Aaa, with a Stable Outlook, for AEV’s total outstanding bonds worth P37 billion.
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.
PhilRatings said it assigned the rating due to AEV’s highly experienced shareholders and management and its sustained good income generation over the past years, albeit with decreasing margins attributable mainly to the Company’s food business.
It also took into consideration AEV’s continuously growing asset and investment portfolio, supported by a manageable leverage position and liquidity, and the increasing economic and market uncertainty caused by the COVID-19 pandemic.
“Having been in operation for a century, the Aboitiz Group has already survived numerous economic downturns. As such, the Group is in a good position to weather the current pandemic crisis,” PhilRatings said.
However, the ratings agency noted that, while AEV’s assets and investments are continuously growing, the current pandemic crisis may hamper the Company’s expansion moving forward.