MANILA, Philippines — Aboitiz Equity Ventures Inc. (AEV) is issuing $400 million in 10-year dollar-denominated unsecured notes.
AEV International Pte. Ltd., a wholly owned subsidiary of AEV based in Singapore, will issue the notes.
“The notes are unrated and have a fixed coupon rate of 4.2 percent, payable semi-annually and are unconditionally and irrevocably guaranteed by AEV as the guarantor,” AEV said.
“Proceeds will be used for reimbursement of funding AEV received for the Gold Coin Group acquisition, proposed offshore investments and for general corporate purposes,” the conglomerate said.
AEV first acquired a majority stake in Gold Coin in 2018. The following year, AEV through its subsidiary Pilmico International Pte. Ltd., raised its stake in Gold Coin to 100 percent.
Gold Coin is engaged in the business of animal feeds manufacturing which it carries out through various subsidiaries operating 20 feed mills situated in seven countries in the Asia-Pacific region.
The move is expected to expand the Aboitiz Group’s animal feeds business within the Asia-Pacific region.
Pilmico International was chosen as the preferred bidder following a competitive bid selection process for the acquisition of Gold Coin shares.
Gold Coin is a company founded by Peter Zuellig.
Aside from food, AEV has investments in power, banking and financial services, food, infrastructure and real estate.
The notes will be listed on the Singapore Exchange, with the settlement date scheduled on Jan. 16.
AEV tapped the Hongkong and Shanghai Banking Corp. Ltd. Singapore Branch, Standard Chartered Bank, DBS Bank Ltd., Mizuho Securities (Singapore) Pte. Ltd. and MUFG Securities Asia Ltd. Singapore branch as joint lead managers.
HSBC and Standard Chartered Bank will act as joint global coordinators while BDO Capital & Investment Corp., BPI Capital Corp., and China Bank Capital Corp. will act as co-managers.