Aboitiz Equity Ventures Inc. (AEV) on Monday said it filed its registration statement with the Securities and Exchange Commission (SEC) for the issuance of the third tranche of its fixed-rate bonds worth P10 billion.
AEV’s bond float, which is part of its P30-billion offering under the shelf registration of program of the SEC, consists of P5 billion in primary offering and an oversubscription of another P5 billion.
The proceeds from the offering are intended to finance the early redemption of certain outstanding bonds of the AEV, to finance future funding requirements of Aboitiz Infra Capital Inc., and other general corporate purposes, the company said.
“Subject to market conditions, the third tranche bonds are currently expected to be offered to the general public during the third quarter of 2021,” it said.
The bonds will be listed at the Philippine Dealing and Exchange Corp. for trading.
AEV’s board has earlier appointed BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., SB Capital Investment Corp. and First Metro Investment Corp. as joint issue managers, joint bookrunners and joint lead underwriters for the bond float.
AEV President and CEO Sabin M. Abotiz, meanwhile, said the company is pursuing its plan to expand into airport operations and build more towers for mobile phone companies.
“Our business stream is very wide. So we’re not looking at anything aside from the new businesses within the organization today. Lots of countries to expand food; lots of countries to expand renewable energy; in infrastructure, lots of different business that we are getting into. Unionbank, lots of opportunities on digital and the millions of millions of unbanked Filipinos. That’s our focus in the next couple of years,” Aboitiz said.
The company has allotted some P48 billion in capital expenditures (capex) this year, some 69 percent higher than last year’s spending of P29 billion. Aboitiz said he is confident that the company will spend all its budgeted capex for the year.
Some P23 billion of the capex will be used to fund the power business, mainly for the completion of GNPower Dinginin as well as the battery energy storage projects while P15 billion will be allotted to the infrastructure unit. Of the amount, P13 billion will be used to fund Aboitiz Infra Capital’s water businesses as well as its foray into the common tower business and other projects, with the remaining P2 billion to be earmarked for Republic Cement’s projects.
Some P4 billion will be utilized by the food group for the expansion of its feedmill business, while P3.1 billion will be given to its property development unit Aboitiz Land for land banking and the completion of its residential projects.
Lender Union Bank has been allotted more than P2 billion in capex for continued enhancements on digital touch points, as well as the construction of an innovation hub to support customer needs during the current health crisis.