Aboitiz Equity Ventures Inc. tapped the foreign market for the first time and raised $400 million through the issuance of fixed-rate, US dollar-denominated Regulation S-only senior unsecured notes by 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 percent per annum 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 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 AEV president and chief executive Sabin Aboitiz.
The Hongkong and Shanghai Banking Corp. Ltd. Singapore Branch, Standard Chartered Bank, DBS Bank Ltd., Mizuho Securities (Singapore) Pte. Ltd. and MUFG Securities Asia Limited Singapore Branch are the joint lead managers and HSBC and Standard Chartered are the joint global coordinators. BDO Capital & Investment Corp., BPI Capital Corp., and China Bank Capital Corp. are the co-managers.
AEV said proceeds from the 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 acquisition expanded Pilmico’s footprint in 11 Asian countries.