Ayala seeks SEC nod for P30-B bond plan

MANILA, Philippines – Ayala Corp. is seeking regulatory approval to establish a bond shelf registration of up to P30 billion. The country’s oldest conglomerate is moving to secure funding flexibility for future peso-denominated debt issuances.

In a disclosure on Thursday, Ayala said its board of directors approved the filing with the Securities and Exchange Commission (SEC) of a five-year shelf registration. It covers potential issuances of Philippine peso-denominated bonds.

READ: Ayala 9-month net income up 36%

The proposed shelf registration will allow Ayala to undertake bond issuances “on an efficient and timely basis” over the five-year period. This is subject to prevailing market conditions and regulatory approvals.

Also, the company said the bonds are intended to be offered through general public offerings.

The filing is subject to approval by the SEC, as well as the Philippine Stock Exchange and the Philippine Dealing and Exchange Corp., in line with listing and trading requirements.

A shelf registration allows a company to raise funds in tranches over a five-year timeline, subject to regulatory conditions, without having to seek separate approvals for each issuance.

By putting in place a shelf registration, companies are able to respond more quickly to favorable market windows. That is, rather than launching a full registration process for every debt offer.

The Ayala group has businesses across sectors that include banking, property, telecommunications, energy, water infrastructure, health care and logistics.

Access to the domestic bond market has been a key funding channel for large corporations. This, particularly amid volatile global markets and elevated interest rates.