Aboitiz firm fully redeems P8.5-B fixed-rate bonds

ABOITIZ Equity Ventures, Inc. (AEV) said on Tuesday that it had fully paid for the early redemption of its seven-year 2015 Series B Bonds for P8.467 billion.

The company said it paid for the bonds through the Philippine Depository & Trust Corp. last week, Aug. 6.

The Series B bonds were part of the first tranche of the company’s P25-billion debt securities program, which was issued in three series.

In a statement disclosed on July 6, AEV Chief Financial Officer Manuel R. Lozano said the decision to redeem the bonds a year ahead of its maturity schedule is part of its ongoing efforts “to reduce costs” and to also “improve profitability” for its stakeholders.

Most of the proceeds were used to finance AEV’s cement venture, as well as the acquisition of Lafarge assets in the Philippines through a joint venture with CRH Plc.

The company has also since submitted documents to complete the requirements for the termination of listing of the bonds.

On Tuesday, AEV shares at the stock exchange rose by 0.50% or 20 centavos to finish at P40.20 each. — Keren Concepcion G. Valmonte