Ayala Group eyes

Ayala Corporation, the country’s oldest conglomerate, is planning capital expenditures of at least R200 billion this year, up from R195 billion in 2017, to support the expansion of its core businesses as well as its newer ventures.

“I don’t know the exact number yet but, as a group, it think it’s bigger than last year. It’s more than R200 billion,” said Ayala Chief Finance Officer Jose Teodoro Limcaoco in an interview.

To raise funds for the huge capital expenditures program for 2018, Limcaoco said “we're looking at all opportunities. We have very strong support from our banks and we have enough bank lines.”

He added that, “we would also look at, possibly, a bond issue sometime this year if the market is conducive. The market is a little bit in a flux.”

Limcaoco said bonds may come from the unused portion of the R30 billion worth of bonds already shelfregistered with the Securities and Exchange Commission.

“My belief is that we should be in the Philippine bond market once a year because it’s good for investors to know you all the time. And (it is) a good practice to become a regular issuer. I’d like to do a Philippine bond issue (or) peso bonds,” he said.

While not yet certain about the size of the possible bond offering, Limcaoco said that “it has to be dignified. It has to be the market size.