Aboitiz to raise $400 M for overseas investments

Aboitiz Equity Ventures, Inc. (AEV) is raising US$400 million from a planned issuance of US dollar-denominated Regulation S-only senior unsecured notes to fund offshore investments.

In a disclosure to the Philippine Stock Exchange, the firm said that, following the fixed income investor meetings and conference calls in Hong Kong, Singapore, and London, it had successfully set the terms of the notes which have a tenor of 10 years.

AEV International Pte. Ltd. (AEVI), a wholly owned subsidiary of AEV based in Singapore, will issue the Notes. The Notes are unrated, have a fixed coupon rate of 4.2 percent payable semiannually, and are unconditionally and irrevocably guaranteed by AEV as the guarantor.

Upon issuance, the Notes will be listed on the Singapore Exchange. The settlement date for the Notes is expected to be on January 16, 2020.

“Proceeds will be used for reimbursement of funding AEVI received for the Gold Coin Group acquisition, proposed offshore investments, and for general corporate purposes,” said AEV.

The Hongkong and Shanghai Banking Corporation Limited Singapore Branch, Standard Chartered Bank, DBS Bank Ltd., Mizuho Securities (Singapore) Pte. Ltd. and MUFG Securities Asia Limited Singapore Branch have been tapped as joint lead managers.

The Hongkong and Shanghai Banking Corporation Limited and Standard Chartered Bank will act as joint global coordinators. BDO Capital & Investment Corporation, BPI Capital Corporation and China Bank Capital Corporation will act as co-managers.

Last year, AEV subsidiary Pilmico International Pte. Ltd. acquired an additional 25 percent of Gold Coin to raise its stake in the feeds maker to 100 percent.

Pilmico’s full ownership of Singapore-based Gold Coin Management Holdings Ltd., the largest agribusiness company in the region, was completed with the buyout of the remaining 25 percent stake held by a Zuellig scion for $120 million.

Gold Coin is engaged in the business of animal feeds manufacturing, which it carries out through various subsidiaries operating 20 feed mills in seven countries in the Asia-Pacific region.