THE regulator has approved Aboitiz Equity Ventures, Inc.’s (AEV) plan to list the P7.55-billion second tranche of its P30-billion fixed-rate bonds that will partly fund the construction of its hydro-powered water treatment plant in Davao.
“While the net proceeds of this bond offering will partially refinance maturing debt obligations, it will also partially finance equity contributions to Apo Agua for the construction of a hydroelectric powered pump water treatment facility in Davao,” AEV Finance Chief Manuel R. Lozano said during a virtual listing ceremony on Monday.
Apo Agua Infrastructura, Inc., a joint venture between AEV and JV Angeles Construction Corp., is a bulk water infrastructure company that aims to supply more than 300 million liters of safe water to the Davao City water district.
Mr. Lozano said that the project is one of the building blocks in the firm’s environmental, social and government strategy.
The Aboitiz holding firm secured the approval from the Philippine Dealing & Exchange Corp., which allows qualified companies to engage in the secondary market trading of the bonds.
Based on a disclosure to the local bourse on Monday, the second batch of AEV’s approved bonds, including oversubscriptions, is equivalent to P7.55 billion.
The bonds will be issued in two series, namely: Series C and Series D. Series C bonds have a fixed interest rate of 2.84% per year, maturing in 2023. Series D bonds, on the other hand, have a fixed interest rate of 3.31% per annum, maturing in 2025.
Earlier in October, AEV received the top credit rating from a local debt watcher Philippine Rating Services Corp. for a proposed P10-billion fixed-rate retail bonds.
On Monday, AEV shares decreased 1.69% to close at P48.05 each. — Angelica Y. Yang