MAKATI CITY, Metro Manila — Aboitiz Equity Ventures (AEV) is set to list its second retail bond offering on August 6, 2015, raising P24 billion, making it the largest retail bond offering this year to date and double the size of the next largest issue of the year. The bonds were offered in three tranches, with tenors of 5.25 years (Series A Bonds), 7 years (Series B Bonds) and 12 years (Series C Bonds). BPI Capital Corporation (BPI Capital) acted as the Sole Issue Manager and BPI Asset Management and Trust Group as Trustee for the transaction.
The bonds were priced with a coupon rate of 4.4722% for the Series A Bonds, 5.0056% for the Series B Bonds, and 6.0169% for the Series C Bonds. The total order book was over P27 billion, or an oversubscription level of 2.7x, well in excess of the initial intention of a P10 billion base issue size. The issue size also makes it the third largest corporate bond issue to date in the Philippine domestic bond market. Market demand for the offer was very strong given the attractiveness of AEV’s credit profile and the current high level of liquidity in the domestic bond market, as well as BPI Capital’s proficient management of the book building process. Significantly, the order book was more evenly distributed between tenors than what has been achieved in most other multi-tranche issues. The issue generated over P10 billion in the 5-year tranche, over P8 billion in the 7-year tranche, and over P5 billion in the 12-year tranche, allowing AEV to achieve an average maturity of over seven years for the entire issue. The 12-year tranche represents the longest maturity bond raised so far this year.
The bank maintains its long-standing relationship with the respected Aboitiz Group with major investments in power, banking, food, and land. AEV, the investment company of the Aboitiz Group, has been recognized as one of the best-managed companies in the Philippines and in the region. Among AEV’s subsidiaries are AboitizPower, UnionBank, Pilmico, AboitizLand, and Aseagas.
Recognized by FinanceAsia as the Best Investment Bank in the Philippines for 2015, BPI Capital upholds its leadership in the banking and finance industry, making it the most trusted transaction advisor, credit sponsor, and financing originator partnering with the most respected businesses and corporations in the country.
ABOUT BPI CAPITAL CORPORATION
BPI Capital Corporation is a wholly-owned subsidiary of the Bank of the Philippine Islands (BPI), one of the largest, best capitalized universal banks with a complete set of financial products in the country. As the leading transaction advisor, credit sponsor, and financing originator, BPI Capital is the trusted financial partner to the most respected names with their most important financial transactions in the Philippines.
ABOUT BANK OF THE PHILIPPINE ISLANDS
Bank of the Philippine Islands, the first bank in the Philippines and Southeast Asia, is a universal bank with an expanded banking license. Together with its subsidiaries, BPI offers a wide range of financial services from consumer banking and lending, asset management, securities brokerage and distribution, insurance, leasing, foreign exchange, and corporate and investment banking. BPI is a leader in Philippine banking, with its high market capitalization, strong Tier 1 capital adequacy ratio and healthy shareholder return, all promoted and supported by prudent management. BPI is rated investment-grade by the international ratings agencies.
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