The Philippine Dealing and Exchange Corporation (PDEx) has approved the planned listing of Aboitiz Equity Ventures’ (AEV) P20 billion fixed-rate retail bonds, which includes oversubscriptions.
In a disclosure to the Philippine Stock Exchange, AEV said the 2022 Bonds consist of a base offer in the amount of P8 billion including P7.45 billion to be issued as the fourth and final tranche under its P30 billion peso-denominated fixed-rate retail bonds registered under the shelf registration program of SEC in 2019.
It also includes P550 million to be issued as the first tranche under AEV’s P30 billion peso-denominated fixed-rate retail bonds registered under the shelf registration program of SEC in 2022, with an oversubscription option of up to P12 billion.
The oversubscription option will form part of the first tranche to be issued under the 2022 Shelf Registration Program, for a total amount of up to P12.55 billion, assuming the oversubscription option is fully exercised.
AEV said the PDEx approval paves the way for the secondary market trading of the Series "A" Bonds, with a fixed interest rate of 6.8725 percent per annum maturing in 2026, and the Series “B” bonds with a fixed interest rate of 7.5321 percent per annum maturing in 2029.
The firm said earlier that it plans to use the proceeds to partially finance the acquisition of GMR-Megawide Cebu Airport Corporation by its wholly owned subsidiary Aboitiz InfraCapital.
A portion of the proceeds will also go to the refinancing of maturing debt.
Philippine Rating Services Corporation (PhilRatings) said it has assigned its highest Issue Credit Rating of PRS Aaa, with a Stable Outlook, to AEV’s proposed bond issue.