BPI Capital Corp. (BPI Capital) played an important role in the success of Aboitiz-Equity Ventures’s (AEV) P24-billion retail bonds which were well received by retail investors.
BPI Capital, which acted as the sole issue manager, and BPI Asset Management and Trust Group as trustee for the transaction, reported overwhelming demand from investors. The bond sale was oversubscribed 2.7 times, according to BPI executive, the total order book was over P27 billion.
The market demand for the offer was very strong, given the attractiveness of AEV’s credit profile and the current high level of liquidity in the domestic bond market.
BPI Capital’s proficient management of the book-building process also helped generate interest in the bond sale.
AEV’s second retail bond offer that raised P24 billion was the largest retail-bond offering this year to date and the third-largest corporate bond issue in the Philippine domestic bond market.
The bonds were offered in three tranches, with tenors of 5.25 years for Series A Bonds; seven years (Series B Bonds) and 12 years (Series C Bonds), which were priced with a coupon rate of 4.4722 percent, 5.0056 percent and 6.0169 percent, respectively.
Significantly, the order book was more evenly distributed between tenors than what had been achieved in most other multi-tranche issues.
The issue generated over P10 billion in the five-year tranche, over P8 billion in the seven-year tranche, and over P5 billion in the 12-year tranche, allowing AEV to achieve an average maturity of over seven years for the entire issue.
The 12-year tranche represents the longest maturity bond raised so far this year.
“We expect future issuance to fund future projects as they become a reality,” Cariaso told the BusinessMirror.
AEV, the investment company of the Aboitiz Group, is recognized as one of the best-managed companies in the Philippines and in the region.
Among AEV’s subsidiaries are Aboitiz Power, UnionBank, Pilmico, Aboitiz Land and Aseagas.
BPI Capital upholds its leadership in the banking and finance industry, making it the most trusted transaction advisor, credit sponsor and financing originator partnering with the most respected businesses and corporations in the country.