Aboitiz Group readies P12B bond offer to fund Mactan airport purchase

Aboitiz Equity Ventures Inc. is tapping the debt market anew with the planned issuance of up to P12 billion in fixed-rate retail bonds in the fourth quarter this year to top up funds for the acquisition of one of the country’s busiest airports.

This would be the fourth tranche of a P30 billion shelf registration program approved by the Securities and Exchange Commission.

Proceeds from the bond issue will be used to partially fund the group’s P25 billion takeover of Mactan Cebu International Airport as well as to repay certain outstanding bonds.

The bonds, which will be listed on the Philippine Dealing and Exchange Corp., obtained 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, an indication that the issuer’s capacity to meet its financial commitment is extremely strong.

The acquisition of the Mactan airport further expands the Aboitiz family’s presence in Cebu. AEV operates Mactan Economic Zone 2 Estate in Lapu-Lapu City and West Cebu Estate in Balamban, Cebu

AEV’s infrastructure portfolio also includes the New Bohol-Panglao International Airport and the Laguindingan International Airport.