By Roderick L. Abad
THE proposed P25-billion fixed-rate retail bonds by the Aboitiz Equity Ventures Inc. (AEV) was given the highest possible grade, so far, by the Philippine Rating Services Corp.
The “PRS Aaa” means that the obligations are of highest quality with a minimum credit risk, thus indicating that the AEV has a strong capacity to meet its financial commitment.
The listed company of the Aboitiz Group plans to distribute the bonds within 2015, with terms from five years to 12 years.
The total principal amount of the bonds, which includes oversubscription, will be used for partial funding of the firm’s planned acquisitions, future investments and other general needs.
On May 12 the company already submitted its application for listing of the bonds with the Securities and Exchange Commission.
BPI Capital Corp. and BPI Asset Management and Trust Group were tapped as issue manager and book runner, as well as trustee, respectively. The outstanding P8-billion fixed-rate retail bonds of AEV also retained its “PRS Aaa” rating in March of this year.
The public holding and management firm of the Aboitiz Group of Companies has major investment holdings in Aboitiz Power Corp., Union Bank of the Philippines, Pilmico Foods Corp., and Aboitiz Land Inc.
AEV reported a consolidated net income to P4.1 billion in the first quarter of 2015.
Core income, likewise, stood at the same figure for the period, or a decrease of 7 percent year-on-year, thus, translating to earnings per share of P0.74.
The power strategic business unit contributed 79 percent to the total earnings as the banking, food and property units accounted for 9 percent, 10 percent, and 2 percent, respectively. Equity attributable to equity holders of the parent dropped by 1 percent to P106.7 billion.