Listed Cebu-based conglomerate, Aboitiz Equity Ventures, may start to issue unsecured notes.
This issuance, however, depends on the market circumstances.
AEV disclosed that its wholly-owned subsidiary, AEV International PTE Ltd., already appointed banks to serve as arrangers for various investor meetings
According to Phil Star, these meetings will take place in different parts of the world.
AEV International also particularly mandated the Hong Kong and Shanghai Banking Corp as well as Standard Chartered Bank to be the joint global coordinators.
It also then appointed other financial institutions to be joint lead managers as well as joint book-runners. Specifically, DBS Bank, Ltd., HSBC, Mizuho Securities, MUFG Series Asia (Singapore) will be the ones arranging a series of fixed income investor meetings and conference calls.
These meetings and calls will take place in various international locations – Hong Kong, Singapore, and London.
They will all take place starting January 6.
Aboitiz Equity Ventures Might Issue Unsecured Regulator S Notes
According to AEV, it might offer US dollar-denominated Regulation S only senior, unsecured notes.
Regulation S securities are the bonds or stocks that cannot be offered, sold, or delivered within the United States.
However, this depends on market conditions.
If these are indeed issued, one can expect the notes to be guaranteed by AEV – without conditions and not revocable.
These notes will be unrated.
The possible amount of notes that Aboitiz might issue is unclear. It is yet to disclose this.
AEV is at present, one of the largest and oldest conglomerates in the Philippines.
The holding company has stakes in different industries.
It has investments in the power, land, food, and infrastructure sectors. It is also part of the banking sector.
2019 a Lukewarm Year, Aboitiz Optimistic About 2020
2019 was not that successful for AEV compared to 2018.
In the nine months of 2019, the company experienced a drop of 9 percent in net income, reaching as low as P15.7 billion.
It also has experienced non-recurring losses of P155 million.
This equals to net foreign exchange and derivative losses for the company.
According to Inquirer, more local corporations will follow suit in tapping more offshore bond deals like Aboitiz.
This is because large funding requirements are starting to crowd out the local debt market.
On its part, Aboitiz is expecting 2020 to experience a spurt in growth in all of its business stakes, especially its flagship power business.
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