Aboitiz Equity Ventures’ (AEV) planned issuance of up to P17.45 billion worth of bonds has been given the highest ratings of PRS Aaa with a Stable Outlook by Philippine Rating Services Corporation (PhilRatings).
In a statement, the ratings agency said AEV is planning a bond issue amounting to P10 billion, with an oversubscription option of up to P7.45 billion. 
The issuance will be the second tranche of AEV’s P30-billion Shelf Registration from 2022 to 2025 (2022 Debt Securities Program). Of the total, P12.55 billion has been issued to date.
The proceeds of the proposed bond issuance will be mainly used to refinance the company’s P6.85 billion bonds maturing on Nov. 16, 2023 and to partially fund the potential acquisition of a 40 percent equity interest in Coca-Cola Beverages Philippines, Inc. (CCBP).
PhilRatings also maintained the Issue Credit Rating of PRS Aaa, with a Stable Outlook, for AEV’s total outstanding bonds worth P47.62 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.
On the other hand, a Stable Outlook means the rating is likely to be maintained in the next 12 months.
PhilRatings said it assigned the rating based on key rating factors including AEV’s experienced shareholders and management, with a strong track record.
It also factored in the firm’s highly diversified investment portfolio which cushioned the adverse impact of external headwinds on some of the Company’s businesses in the first half of 2023.
Also considered was AEV’s sound growth strategies, with a particular focus on digitalization and portfolio diversification, its sustained profitability, and its manageable leverage and liquidity positions.
AEV announced earlier this month that it has partnered with Coca-Cola Europacific Partners PLC (CCEP) to buy 100 percent of Coca-Cola Beverages Philippines, Inc. (CCBP) from The Coca-Cola Company (TCCC).
The acquisition will be at an enterprise value of $1.8 billion on a debt-free cash-free basis, consistent with TCCC’s stated intent to divest its bottling operations.
AEV said the potential joint transaction may lead to the acquisition of CCBP from TCCC, based on a 60:40 ownership structure between CCEP and AEV.
If completed, the proposed acquisition would build on AEV’s portfolio diversification strategy to enter the branded consumer goods space and on CCEP’s successful expansion into the Asia-Pacific region via its acquisition of Coca-Cola Amatil in 2021.
AEV said it would be well positioned to support CCBP’s growth ambition given the synergies that can be generated from AEV’s other businesses.