ABOITIZ Equity Ventures, Inc. (AEV) announced that it will completely redeem the outstanding Series B of its fixed-rate retail bonds issued in 2015, one year before their expiration date.
On August 6, this year, the firm would prepay the bonds for P8.467 billion at an early redemption price of 100.5 percent of their face value.
“The bond repayment is part of our ongoing efforts to decrease expenses and enhance profitability for all of our stakeholders,” said AEV Chief Financial Officer Manuel R. Lozano in a statement on Tuesday.
On August 6, 2015, the Philippine Dealing & Exchange Corp. launched seven-year Series B bonds with a fixed interest rate of 5.0056 percent. It was described as “critical for AEV’s ongoing overall development.”
The majority of the profits were used to fund the company’s cement endeavor, which included the purchase of Lafarge assets in the Philippines via a joint venture with CRH Plc.
The Series B bonds were issued as part of the first tranche of the company’s P25-billion debt securities program, which was issued in three series, including Series A bonds with a fixed rate of 4.4722 percent per year and maturing in 2020. It also contains the 12-year Series C bonds, which mature in 2027 and have a fixed rate of 6.0169 percent.
This year, AEV plans to restructure maturing debt and prepay current higher-cost debt.
The firm is currently working with BPI Asset Management and Trust Corp. and the Philippine Depository and Trust Corp. to send out notifications and calculate the amounts owed to 2015 Series B bondholders.