SEC green-lights Ayala’s P20-B preferred share sale
Securities and Exchange Commission (SEC) Headquarters in Makati. | PHOTO: Daniella Agacer / INQUIRER.net
MANILA, Philippines — Ayala Corp. is all set to raise up to P20 billion from its preferred share offering next month after getting the go signal of the Securities and Exchange Commission (SEC). This paves the way for the company to repay its loans and fund projects in the pipeline.
In a statement on Wednesday, the SEC said its commission in full had approved the registration statement of Ayala. This covers the reissuance of five million preferred B shares at P2,000 each.
The country’s oldest conglomerate also has an option to offer an additional 5 million shares in case of high demand. Should this be fully exercised, Ayala may raise up to P19.86 billion from the offer, according to the SEC.
Proceeds from the offer would be used to repay short-term bank loans and support general corporate purposes and capital expenditures.
The shares will be reissued and listed on the main board of the Philippine Stock Exchange on June 18.
READ: The case for preferred shares
Holders of preferred shares are not given voting rights, although they are prioritized during dividend payouts.
This comes as Ayala and its subsidiaries gear up for expansion this year. Renewable energy firm ACEN Corp., for example, plans to operationalize around 800 megawatts of capacity.
More residential projects
Meanwhile, developer Ayala Land Inc. seeks to build more premium residential projects and continue the rehabilitation of its flagship malls, particularly in Metro Manila.
In March, Ayala signed a $200-million term loan agreement with Mizuho Bank Ltd. and Sumitomo Mitsui Banking Corp. This is the conglomerate’s first yen-denominated debt.
Japan Credit Rating Agency Ltd. recently gave Ayala an “A-“ foreign currency long-term issuer rating, allowing the Zobel family-led firm to tap loans at “more competitive rates.”
Yen loans are seen to be cheaper, especially since Japan keeps its interest rates low amid low inflation and slow economic growth.
In the first quarter, ACEN and Globe Telecom Inc. dragged the earnings of Ayala by 4 percent to P12.6 billion. Excluding one-off items, the core income of Ayala went down by 4 percent to P11.3 billion.
