Ayala to list bonds on PH dealing system

MANILA, Philippines—Conglomerate Ayala Corp. is set to list on the Philippine Dealing & Exchange Corp. on Thursday (May 12) P10 billion worth of innovative bonds that allow investors to cash out ahead of maturity date.

Ayala disclosed to the Philippine Stock Exchange that PDEx had approved its application to list the 6.8 percent fixed rate “multiple putable” bonds due 2021.

“The listing of the Bonds shall widen the reach of price discovery and transparency for the Ayala issue and enables participation across all markets on PDEx,” the disclosure said.

The trading and settlement of the bonds, which are rated “triple-A” by local credit watcher Philippine Rating Services Corp., shall be in accordance with the PDEx rules. Obligations rated PRS Aaa by Philratings are deemed of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligations is considered extremely strong.

These innovative bonds give the investors the flexibility to sell their bonds back to Ayala before full maturity. Such a “put” option is given on the fifth and eighth year. The multiple putable bonds are called such because investors have a choice of whether to make an early exit on the fifth or eighth year or wait until the 10th year.