SEC oks AEVs P10-B bonds

 Economy
Nov 082013
 

MANILA, Philippines – Aboitiz Equity Ventures Inc., the listed holding firm of the Cebu-based Aboitiz clan, secured the Securities and Exchange Commission’s nod to issue up to P10 billion worth of retail bonds.

The approval, however, is contingent on AEV’s compliance of certain conditions which include the submission of certain documents to the SEC, the company said in a disclosure to the Philippine Stock Exchange.

The 10-year bonds earlier received the highest credit rating of  “PRS Aaa” from the Philippine Rating Services Corp.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. It means the issuer’s capacity to meet its financial obligations is extremely strong.

PhilRatings said the credit score reflects AEV’s sustained and strong operating performance, sound capital structure with a conservative leverage position and positive growth prospects.

AEV’s main core investments are  in power distribution and generation (Aboitiz Power), banking (Union Bank of the Philippines), food manufacturing (Pilmico Foods) and property development (Aboitiz Land).

Business ( Article MRec ), pagematch: 1, sectionmatch: 1

It is also diversifying into infrastructure, particularly on water distribution and airport development.  The conglomerate in partnership with  Ayala Corp. is vying for the Mactan-Cebu International Airport.

Aboitiz Power, is a leading power generation and distribution company in the county with a total attributable capacity of 2,232 megawatts.

Aboitiz Equity earnings drop 25% to P4.6 B

 Economy
Oct 302013
 
Aboitiz Equity earnings drop 25% to P4.6 B

MANILA, Philippines – Lower selling prices of electricity and the revaluation of its dollar-denominated liabilities resulted in lower earnings for conglomerate Aboitiz Equity Ventures Inc. (AEV). In a regulatory filing, AEV said its third quarter consolidated net income sank 25 percent to P4.6 billion from a year ago. AEV said it incurred a non-recurring loss of P119.7 million in the July to September period due to the revaluation of dollar-denominated liabilities and placements. But it was partly offset by the reversal of a previous impairment provision related to the sale of a stake in an associate, as well as AEV’s share in its power unit’s one-time gain from the redemption of shares. “Adjusting for these, AEV closed the quarter with a core net income of P4.7 billion, down 25 percent year-on-year,” the holding firm said. In the third quarter, the power business accounted for 80 percent of earnings, followed by banking at 12 percent, food at seven percent and real estate at one percent. For the nine-month period, AEV’s consolidated net income slipped eight percent to P16.6 billion from P18 billion. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Power accounted for 71 percent of income, followed by the banking, food and property at 22 percent, six percent and one percent, respectively. “We remain pleased with the performance of our business units. Our challenge in the coming years is to deploy the cash flow we are generating into ventures that meet our hurdle rates,” said AEV president and CEO Read More …

AEV secures top rating for P10-B bond

 Economy
Oct 212013
 
AEV secures top rating for P10-B bond

MANILA, Philippines – Cebu-based conglomerate Aboitiz Equity Ventures Inc. (AEV), one of the top power producers in the Philippines, has secured the highest credit rating for its planned P10-billion bond issuance. In a disclosure, the listed holding firm said local credit rater Philippine Rating Services Corp. (PhilRatings) assigned the PRS Aaa score on its long-term bonds. “Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong,” PhilRatings said. Late last month, AEV’s board of directors authorized the issuance of up to the P10 billion in retail bonds with tenors of seven and 10 years. AEV will offer P5 billion bonds maturing in 2020 and another P5 billion maturing in 2023. PhilRatings said the credit score reflects AEV’s strong financial performance with a high level of operating cash flow and sound capital structure with a conservative leverage position. Philratings said it also noted the “positive growth prospects for the company’s business portfolio and AEV’s highly-experienced and conservative management team.” Business ( Article MRec ), pagematch: 1, sectionmatch: 1 AEV is one of the largest conglomerates in the country. It has investments in power (Aboitiz Power Corp.), banking (Union Bank of the Philippines), food manufacturing (Pilmico Foods Corp.) and property development (Aboitiz Land Inc.). “The company’s main core business, Aboitiz Power, is a leading power generation and distribution company in the Philippines,” PhilRatings said. As of end-September, Aboitiz Power had a total attributable capacity of Read More …