Fernando Zobel de Ayala . INQUIRER FILE PHOTO
MANILA, Philippines–Conglomerate Ayala Corp. has raised P3.3 billion Wednesday night from the sale of treasury shares, taking advantage of strong investor appetite to raise fresh funds for power and infrastructure investments.
In a press statement, Ayala said it had placed out about 5.18 million common shares at P647 per share, a discount of 3 percent from Wednesday’s closing price of P667 per share. CLSA Ltd. was the sole placing agent in this offer of Ayala’s treasury shares.
The shares were crossed through the Philippine Stock Exchange Thursday.
“This new funding will further strengthen our balance sheet to build up our portfolio in these two sectors. Overall, we are excited about the opportunities and the strategic value that investments in these two sectors can bring to Ayala. We hope to be able to contribute in some measure to the development of these sectors and at the same time create future sources of earnings and value for the group,” Ayala president and chief operating officer Fernando Zobel de Ayala said.
Ayala intends to use these proceeds to fund “existing and potential sizable projects in the infrastructure and power sectors.” Ayala is looking to invest up to $1 billion over the next five years in these two sectors.
In the last two years, Ayala has established a pipeline of power platforms in the conventional and renewable technologies and has committed over $300 million of equity on about 900 megawatts of gross generating capacity. It is looking to increase its equity commitment to $500 to $600 million in the next 12 to 18 months.
In conventional energy space, Ayala has entered into an agreement to acquire a stake of about 20-percent in GN Power Mariveles Coal Plant Ltd. Co., a 600-megawatt coal facility in Bataan soon to commence operation. The conglomerate likewise has a 50-percent interest in South Luzon Thermal Energy Corp. which is constructing a 2×135-megawatt coal plant in Batangas in partnership with Trans Asia Oil and Development Corp.
In renewable energy, Ayala has a 50-percent stake in NorthWind Power Development Corporation, a 33-megawatt wind facility in Ilocos Norte, as well as interests in various mini-hydro projects.
“Ayala continues to actively explore greenfield and acquisition opportunities given the significant power backlog in various regions,” the statement said.
In transport infrastructure, on top of the Daang Hari–South Luzon Expressway Connector road – the first public-private partnership project rolled out which Ayala won – Ayala has set its sights on bidding for certain projects in the toll road, rail, and airport spaces.
A partnership with Metro Pacific Investments Corp. has likewise been prequalified to bid for the LRT Line 1 extension and operations and maintenance project. The Ayala-MPIC consortium also prequalified to bid for the automatic fare collection system for rail. Ayala also prequalified to bid for the Mactan Cebu International Airport passenger terminal project in partnership with Aboitiz Equity Ventures and ADC&HAS Airports Inc.