Aboitiz Equity to borrow another P17B via bond issue

MANILA  -Aboitiz Equity Ventures (AEV) is tapping the bond market anew by the third quarter as it embarks on expansion projects in renewable energy and infrastructure this year.

In a disclosure on Wednesday, the diversified conglomerate said its board of directors had approved the plan to offer P17.45-billion worth of fixed-retail bonds.

This will be the second tranche from the P30-billion shelf registration program greenlighted by the Securities and Exchange Commission last year.

AEV returning to the debt market with new P30-B bond program

It has yet to finalize the interest rate, offer price, tenors and other terms and conditions of the bond offering.

AEV has also yet to appoint the issue managers, book runners and underwriters for the transaction.

In March, the listed conglomerate disclosed that it would be spending P78 billion—an increase of 10 percent in 2022—in capital expenditures (capex) this year.

About 42 percent or P32 billion of the earmarked budget will go to Aboitiz InfraCapital Inc., which is keen on expanding its economic states, telecommunication towers business and digital infrastructure.

A part of the capex would also go to completion and maintenance of Apo Agua, its bulk water project in Davao City.

AEV is also allocating spending for solar, geothermal, hydro and wind projects.

“There will also be investments for improving the efficiency and reliability of existing base load plants critical in powering the country’s economic progress, as well as for various land acquisitions, news substations and new meters for its distribution business,” AEV said earlier.

As for its banking arm, Union Bank of the Philippines is set to spend P5 billion to boost digital channels and features, among others. INQ

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