Ayala Corp. raises P10B from 15-year bonds

MANILA, Philippines—Conglomerate Ayala Corp. has completed a P10-billion fund-raising from the sale of long-term debt paper and will list these 15-year bonds on the local fixed income exchange Philippine Dealing & Exchange Corp. this Friday.

The bonds carrying a 6.875-percent interest rate per annum due 2027 have been approved for listing by the PDEx board effective May 11, Ayala managing director and treasurer Ramon Opulencia told the Philippine Stock Exchange on Wednesday.

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

The trading and settlement of the bonds would be in accordance with the PDEx rules, he said.

Ayala is further building up its cash position to fund expansion to new growth areas like infrastructure and power generation.

The bonds will be redeemable (in full but not in parts) by the Ayala via call options starting in the 10th year and every year thereafter until the 14th year.

These fixed rate bonds due in 2027 obtained the highest local issue credit rating of triple-A from Philippine Rating Services Corp. Obligations rated “PRS Aaa” are deemed of the “highest quality with minimal credit risk” and that the obligor’s capacity to meet its financial commitment is “extremely strong.”

The rating firm said Ayala’s share in the profits from its diversified portfolio of investments in key subsidiaries and associates – such as Ayala Land, Inc., Bank of the Philippine Islands, Globe Telecom and Manila Water Co. – continued to strengthen the holding company’s profitability profile.