AEV to raise up to $400M for offshore expansion in maiden dollar bond issue
Tapping the foreign market for the very first time, Aboitiz Equity Ventures Inc. (AEV) raised $400 million through the issuance of fixed-rate, US dollar-denominated Regulation S-only senior unsecured notes by its wholly-owned subsidiary, AEV International Pte Ltd. The notes 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% p.a. and a tenor of 10 years.
The Notes are unrated, payable semi-annually, and are unconditionally and irrevocably guaranteed by AEV. 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. We look forward to availing of the international market to fund further growth and enable us to advance business and communities,” said Sabin M. Aboitiz, AEV President and Chief Executive Officer.
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 and The Hongkong and Shanghai Banking Corporation Limited and Standard Chartered Bank will act as joint global coordinators. BDO Capital & Investment Corporation, BPI Capital Corporation and China Bank Capital Corporation will act as co-managers.
Proceeds from this maiden issuance will be used for reimbursement of 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 via Pilmico International (a wholly-owned subsidiary of AEV International) in the Asia-Pacific region. The said acquisition has expanded Pilmico’s footprint in 11 Asian countries.