Ayala Corp aims to raise up to P15B via preferred shares issuance

MANILA, Philippines — Zobel family-led conglomerate Ayala Corp. plans to issue up to P15 billion worth of preferred shares as the country’s oldest conglomerate shores up capital to fund expansion plans.

In a stock exchange filing on Thursday, Ayala Corp said its board of directors had approved the issuance of preferred shares with a base amount of P10 billion.

An oversubscription option of up to P5 billion will also be allotted in case of high demand.

The company clarified that this was still subject to regulatory approval and that “appropriate disclosures shall be made once the terms have been finalized.”

ACEN a priority

Earlier this year, Ayala president and CEO Cezar Consing said they would increase their capital spending by 14 percent to P284 billion as some of the group’s core business units intensified expansion plans.

READ: Ayala plumps up capex to P284B as units scale up

Consing noted that they would particularly prioritize the listed energy platform ACEN Corp. for capital spending.

“If you have a large renewable energy business that supplies a significant amount of energy, that would change our lives,” he said.

ACEN aims to expand its renewable energy portfolio to 20 gigawatts by 2030. It currently has close to 6 GW of capacity.

This year, the company plans to spend P72 billion, up from P40 billion last year, to bankroll new projects locally and abroad.

Meanwhile, Ayala Land Inc. (ALI), the Ayala group’s property arm, will earmark P100 billion in capital expenditure this year, up from P86.2 billion last year.

ALI earlier said it planned to launch more projects under its premium brands, Ayala Land Premier and Alveo Land.

Telecommunications giant Globe Telecom Inc. reduced its planned capital spending this year by 22 percent to P55 billion, its lowest budget allocation since 2019 as the company works to improve its balance sheet.