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.”

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 2,232 megawatts (MW).