Aboitiz Equity Ventures Inc., said it will be redeeming its P8.47 billion bond due 2022 ahead of maturity.
The Series B, seven-year bond, issued in 2015 is part of the first tranche of the company’s P25 billion debt securities program, issued in three series: Series A, with a fixed interest rate of 4.4722 percent per annum, which matured in 2020; the Series B seven-year bonds, with a coupon of 5.0056 percent, due 2022; and the Series C 12-year bonds, with a coupon of 6.0169 percent, that will mature in 2027.
Majority of the proceeds of the bond was used to finance its cement venture with the acquisition of Lafarge assets in the Philippines, through a joint venture with CRH Plc.
The Series B bonds were listed in the Philippine Dealing Exchange.
Exercising its early redemption option, AEV will prepay the 2015 Series B Bonds at an early redemption price of 100.5 percent of its face value this August.
“The prepayment of the bonds is part of our continuing efforts to reduce costs and further improve profitability for all of our stakeholders,” said Manuel Lozano, Aboitiz Equity chief finance officer.
“AEV is coordinating with both BPI Asset Management and Trust Corp. and the Philippine Depository and Trust Corp. (PDTC), the registrar and paying agent of the 2015 Series B Bonds, for the corresponding notices and computation of the amounts due to the bondholders of the 2015 Series B Bonds,” Aboitiz Equity said.
