Ayala bond offer secures SEC nod

The Securities and exchange Commission (SEC) has approved the P30-billion shelf registration of conglomerate Ayala Corp., some P10 billion of which will be immediately be sold to the market.

In its meeting on May 11, the SEC en banc approved the registration statement of Ayala, subject to the company’s compliance with certain remaining requirements.

The first tranche of Ayala’s debt securities program will comprise up to P6 billion of 3-year bonds due in 2024 and 5-year bonds due in 2026, with an oversubscription option of up to P4 billion.

Ayala expects to net up to P9.87 billion from the first tranche, assuming the oversubscription option is fully exercised. The proceeds will be used to refinance maturing debt and partially finance the company’s capital expenditures.

The bonds, which will be offered at face value, will be listed and traded on the Philippine Dealing and exchange Corp.

Ayala engaged BPI Capital Corp. as issue manager for the transaction. BPI Capital will also serve as joint lead underwriter and bookrunner alongside BDO Capital and Investment Corp., China Bank Capital Corp., First Metro Investment Corp. and SB Capital Investment Corp.

The company said its attributable income last year was cut in half to P17.14 billion from the previous year’s P35.27 billion as most of its business underperformed.

Revenues were down 25 percent to P219.92 billion from the previous year’s P295.26 billion.

“Our sequential growth in the fourth quarter reflects a recovery in consumer confidence that has started to show in the latter part of 2020. We expect this trajectory to continue and lead to a full economic revival by 2022 as mobility further improves and as the country executes on the vaccination rollout as planned,” company president and COO Fernando Zobel de Ayala said.