Business World Online
Posted on October 21, 2013 10:43:42 PM
HOLDING FIRM Aboitiz Equity Ventures, Inc. (AEV) has bagged the highest credit grade for its planned P10-billion retail bond sale, local debt watcher Philippine Rating Services Corp. (PhilRatings) said in a statement yesterday.
“A credit rating of PRS Aaa was assigned to AEV’s corporate bonds,” PhilRatings said.
The P10-billion bonds, which are planned for offer next month once regulatory approval is secured, will have seven- and 10-year maturity.
Coupon rates have yet to be set.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk, the credit rater said, with the issuer’s capacity to meet financial obligations deemed “extremely strong.”
According to PhilRatings, the grade reflects the company’s strong financial performance, sound capital structure, good business growth prospect, as well as highly experienced and conservative management team.
AEV is one of the country’s largest conglomerates, with investments in the power, banking, food manufacturing and property development sectors.
Its main business, Aboitiz Power Corp. (AboitizPower), is one of the leading power generation and distribution firms in the Philippines. As of end-September, AboitizPower had a total capacity of 2,232 megawatts (MW), according to PhilRatings.
AEV’s banking arm, Union Bank of the Philippines, Inc., had 185 branches nationwide as of end-September.
Pilmico Foods Corp., the conglomerate’s food manufacturing arm, is into flour production and -- with its subsidiaries -- has expanded into feeds and hog-growing.
The real estate arm of the company, Aboitiz Land, Inc. (AboitizLand), has expanded its footprint further out of Metro Manila with its purchase of a 60% stake in Lima Land, Inc., for P1.36 billion. Lima Land is developer and operator of Lima Technology Center, an industrial zone in Batangas.
AboitizLand has also developed The Outlets, a mall in Mactan, Cebu.
“The group is focused on the expansion of the various business units: power, banking, food manufacturing and property development,” PhilRatings said.
“The bulk of investments will be for new capacity additions for the power unit.”
AboitizPower plans to spend some P125 billion in the next five years for its power projects across the country.
“Pilmico is also looking at expanding its feeds and farm capacities and logistics infrastructure,” it said.
“AEV is likewise keen to pursue infrastructure project opportunities.”
AEV’s partnership with Ayala Corp. has been prequalified to bid for a P17.5-billion public-private partnership (PPP) project to rehabilitate Mactan-Cebu International Airport.
The company is also looking to bid for another P35-billion PPP project to build Cavite-Laguna Expressway.
AEV’s profit fell by 3.62% to P14.37 billion in the first semester from P14.91 billion in the same period last year. In the same comparative periods, revenues dropped 3.77% to P38.82 billion from P40.34 billion, while cost and expenses fell 9.68% to P26.69 billion from P29.55 billion.
Shares of the conglomerate lost 50 centavos or 0.99% to close P50.00 apiece yesterday from 50.50 each on Friday last week. -- C. H. C. Venzon source
The P10-billion bonds, which are planned for offer next month once regulatory approval is secured, will have seven- and 10-year maturity.
Coupon rates have yet to be set.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk, the credit rater said, with the issuer’s capacity to meet financial obligations deemed “extremely strong.”
According to PhilRatings, the grade reflects the company’s strong financial performance, sound capital structure, good business growth prospect, as well as highly experienced and conservative management team.
AEV is one of the country’s largest conglomerates, with investments in the power, banking, food manufacturing and property development sectors.
Its main business, Aboitiz Power Corp. (AboitizPower), is one of the leading power generation and distribution firms in the Philippines. As of end-September, AboitizPower had a total capacity of 2,232 megawatts (MW), according to PhilRatings.
AEV’s banking arm, Union Bank of the Philippines, Inc., had 185 branches nationwide as of end-September.
Pilmico Foods Corp., the conglomerate’s food manufacturing arm, is into flour production and -- with its subsidiaries -- has expanded into feeds and hog-growing.
The real estate arm of the company, Aboitiz Land, Inc. (AboitizLand), has expanded its footprint further out of Metro Manila with its purchase of a 60% stake in Lima Land, Inc., for P1.36 billion. Lima Land is developer and operator of Lima Technology Center, an industrial zone in Batangas.
AboitizLand has also developed The Outlets, a mall in Mactan, Cebu.
“The group is focused on the expansion of the various business units: power, banking, food manufacturing and property development,” PhilRatings said.
“The bulk of investments will be for new capacity additions for the power unit.”
AboitizPower plans to spend some P125 billion in the next five years for its power projects across the country.
“Pilmico is also looking at expanding its feeds and farm capacities and logistics infrastructure,” it said.
“AEV is likewise keen to pursue infrastructure project opportunities.”
AEV’s partnership with Ayala Corp. has been prequalified to bid for a P17.5-billion public-private partnership (PPP) project to rehabilitate Mactan-Cebu International Airport.
The company is also looking to bid for another P35-billion PPP project to build Cavite-Laguna Expressway.
AEV’s profit fell by 3.62% to P14.37 billion in the first semester from P14.91 billion in the same period last year. In the same comparative periods, revenues dropped 3.77% to P38.82 billion from P40.34 billion, while cost and expenses fell 9.68% to P26.69 billion from P29.55 billion.
Shares of the conglomerate lost 50 centavos or 0.99% to close P50.00 apiece yesterday from 50.50 each on Friday last week. -- C. H. C. Venzon source
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