Aboitiz to raise $400M

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    Aboitiz Equity Ventures Inc. (AEV) is looking to raise $400 million in dollar-denominated bonds which it will use to finance its recent overseas expansion.

    The company said the bonds will be a “Regulation S-only senior unsecured notes by wholly-owned subsidiary, AEV International Pte Ltd.,” and will be listed on the Singapore Stock Exchange.

    This will be AEV’s first international dollar bond issuance and will be used for the 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,  expanding Pilmico’s footprint in 11 Asian countries.

    Th1e company said that following fixed income investor meetings and conference calls in Hong Kong, Singapore, and London, the bonds will be a 10-year issuance with a coupon rate of 4.2 percent.

    The notes are unrated, payable semi-annually, and are unconditionally and irrevocably guaranteed by AEV. Settlement date is expected to be on Jan. 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 Aboitiz, AEV president.

    Tapped joint lead managers are Hongkong and Shanghai Banking Corp. Ltd., (HSBC) Singapore Branch, Standard Chartered Bank, DBS Bank Ltd., Mizuho Securities (Singapore) Pte. Ltd. and MUFG Securities Asia Limited Singapore Branch while and HSBC and Standard Chartered Bank will act as joint global coordinators.

    BDO Capital & Investment Corp., BPI Capital Corp., and China Bank Capital Corp., will act as co-managers.