CONGLOMERATE Aboitiz Equity Ventures (AEV) Inc. has listed last Thursday its P17.45 billion fixed-rate retail bonds at the Philippine Dealing and Exchange Corp. (PDEX).
The debt papers consist of a base offer in the principal amount of P11 billion and an oversubscription option in the principal amount of up to P6.45 billion.
The listing paves the way for the secondary market trading of AEV’s Series-C bonds, with a fixed interest rate of 6.3402 percent per annum maturing in 2025, Series-D bonds with a fixed interest rate of 6.4762 percent maturing in 2028 and Series-E bonds with a fixed interest rate of 6.8032 percent maturing in 2033.
These bonds form part of the second and final tranche of retail bonds from AEV’s P30 billion peso-denominated fixed-rate retail bonds shelf registration program in 2022.
AEV last month said it will acquire the rights to bottle Coca-Cola products in the Philippines for $1.8 billion.
The company said AEV and Coca-Cola Europacific Partners PLC (CCEP) entered into a non-binding letter of intent with The Coca-Cola Co., setting out the terms on which AEV and CCEP propose to acquire its 100-percent ownership in Coca-Cola Beverages Philippines Inc., the local bottling unit of the Atlanta, Georgia-headquartered beverage-maker.
The $1.8 billion will be on a debt-free, cash-free basis, consistent with TCCC’s intent to divest its bottling operations, AEV said.
“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,” the company said.
“AEV would be well positioned to support CCBP’s growth ambition given the synergies that can be generated from AEV’s other businesses,” it said.
AEV’s proposed acquisition of CCBP, with CCEP, offers a great opportunity to co-acquire an established, well-run business with attractive profitability and growth prospects, the company said.