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.

Union Bank raises P3 B from LTNCD issuance

 Economy
Oct 192013
 
Union Bank raises P3 B from LTNCD issuance

MANILA, Philippines – Union Bank of the Philippines has raised P3 billion through the issuance of long-term negotiable certificates of time deposits (LTNCDs), a company disclosure to the Philippine Stock Exchange said. The LTNCDs carry a coupon rate of 3.5 percent per annum, payable quarterly beginning January 2014. The maturity date of the long-term deposits is on April 17, 2019. HSBC was the sole lead arranger and selling agent for the offering while the selling agents included Multinational Investment Bancorporation and UBP. The net proceeds of the issuance will be used to improve the bank’s deposit maturity profile and support business expansion plans. “UBP continues to show commitment to its customers by providing wider choices of investment assets such as these LTNCDs, which offer higher yields as compared to other types of instruments due to lesser intermediation costs, while lengthening the bank’s maturity profile,” said UBP president and chief executive officer Victor B. Valdepenas. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 LTNCDs are negotiable certificates of time deposits and are tax exempt for qualified individuals if held for at least five years. The Philippine Deposit Insurance Corp. (PDIC) insures up to a maximum coverage per depositor, currently at P500,000. These are bank products with long tenors, from five to 10 years, are offered to investors looking for a higher interest rates compared to regular savings accounts or shorter-term deposits. The Aboitiz-led bank earlier said it is confident it will post income growth of more than 10 percent this Read More …