Aboitiz Equity Ventures Inc. (AEV) announced it will prepay its PHP9.1 billion ($158 million) fixed-rate retail bonds ahead of their scheduled June 2026 maturity, exercising an early redemption option to optimize its capital structure.
In a disclosure to the Philippine Stock Exchange, AEV said it will redeem in full the outstanding 3.5-year bonds issued on Dec. 7, 2022, known as the 2022 Series A Bonds.
The early redemption date is set for June 9, 2025, the first banking day following the original redemption date of June 7, 2025. The bonds will be prepaid at 100.25% of face value, inclusive of applicable taxes.
The company said it is coordinating with BDO Unibank Inc. – Trust and Investment Group, the bond trustee, and the Philippine Depository and Trust Corp. (PDTC), the registrar and paying agent, to facilitate the distribution of notices and calculation of amounts due to bondholders.
The move reflects AEV’s continued efforts to manage its debt profile amid changing market conditions and may reduce future interest costs.
The bond issuance was part of AEV’s capital-raising program to support corporate initiatives across its power, infrastructure, banking, and food businesses.
AEV, the holding firm of the Aboitiz Group, remains active in managing liabilities and investments as it pursues its transformation into a “techglomerate,” leveraging digital and innovation-driven strategies across its portfolio.
The prepayment follows similar moves by other Philippine corporates aiming to navigate interest rate risks and maintain financial flexibility.
Business News Asia