THE board of Aboitiz Equity Ventures Inc. (AEV) on Friday said it approved the issuance of P25 billion worth of fixed-rate retail bonds, which can be issued in tranches depending on market conditions.
“The bonds will be registered under the Securities Regulation Code and is expected to be offered to the general public in the second half of 2015,” the company said in its disclosure to the Philippine Stock Exchange. The debt will also be listed at the Philippine Dealing and Exchange Corp.
“AEV will use the proceeds of the bonds to finance planned acquisitions, future investments and other general corporate requirements,” the company said.
Net income of AEV declined by 13 percent last year to P18.4 billion from P21 billion in the previous year.
The company incurred a non-recurring gain of P436 million from the revaluation of AboitizPower’s consolidated dollar-denominated liabilities and placements, and a one-off gain of P634 million from the sale of a couple of the group’s investments.
AboitizPower also booked a non-recurring cost for the acquisition of Lima Utilities Corp.
Adjusting for these one-off’s, AEV’s core net income dropped by 15 percent to P17.9 billion from last year.
Moving forward, the company sees more growth opportunities from infrastructure investments, which it has made the fifth leg of its business.
“Our strategic growth plans remain intact as we pursue to further strengthen and expand our businesses, keeping pace with the country’s economic growth,” Erramon Aboitiz, AEV president and CEO, said.
Power accounted for 71 percent of AEV’s business, followed by banking, food and land development, with income contributions of 18 percent, 7 percent and 4 percent, respectively.
The company, through its joint venture with JV Angeles Construction Corp., has also been awarded the contract to develop a 300 MLD bulk water-supply project to support Davao City’s growing needs, the country’s largest private bulk water-supply project to date.