AEV to issue first-ever dollar denominated bonds to finance offshore expansion
CEBU CITY—The Aboitiz Equity Ventures Inc. (AEV) aims to raise $400 million through the issuance of its fixed rate, US dollar-denominated unsecured notes.
The issuance of the notes will be made through AEV International PTE Ltd., its wholly-owned subsidiary. It will be listed on the Singapore Stock Exchange.
This is AEV’s first international dollar bond issuance.
“Following fixed income investor meetings and conference calls in Hong Kong, Singapore, and London, the notes will be issued at par with a coupon rate of 4.2 percent per annum and a tenor of 10 years,” according to AEV.
The notes are unrated, payable semi-annually, and are unconditionally and irrevocably guaranteed by AEV, the company said.
The settlement date is expected to be on January 16, 2020.
“This bond issuance reflects our optimism in the strength of our fundamentals and the
healthy appetite among foreign investors today,” said Sabin M. Aboitiz, AEV president and chief executiveecutive officer.
“We look forward to availing of the international market to fund further growth and enable us to advance business and communities,” Aboitiz added.
The Hongkong and Shanghai Banking Corporation Limited Singapore Branch, Standard Chartered Bank, DBS Bank Ltd., Mizuho Securities (Singapore) Pte. Ltd. and MUFG Securities Asia Limited Singapore Branch will act as joint lead managers.
The Hongkong and Shanghai Banking Corporation Limited and Standard Chartered Bank will act as joint global coordinators.
On the other hand, BDO Capital & Investment Corporation, BPI Capital Corporation and China Bank Capital Corporation will act as co-managers.
AEV will use the proceeds from this issuance for the reimbursement of the funding AEVI received for the Gold Coin Group acquisition, proposed offshore investments, and for general corporate purposes.
The Gold Coin acquisition, completed in 2019, is the largest investment of the Aboitiz Group through the Pilmico International. The company is a wholly-owned subsidiary of AEV International in the Asia-Pacific region.
The said acquisition has expanded Pilmico’s footprint in 11 Asian countries. / bmjo
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