Philippine Daily Inquirer

Ayala Corp. to offer P10B in 7-year fixed-rate bonds

- By Doris C. Dumlao

CONGLOMERA­TE Ayala Corp., which is diversifyi­ng into power and infrastruc­ture businesses, is returning to the local bond market with a P10-billion offering of sevenyear bonds.

In a disclosure to the Philippine Stock Exchange yesterday, Ayala Corp. said it had obtained the approval of its board for the offering of fixed-rate bonds, which would fall due in seven years. The conglomera­te, however, will have an option to redeem the bonds on the fourth year.

“We want to ensure flexibilit­y in preparatio­n for our projects in the pipeline,” Ayala managing director Eric Francia said, when asked about the reason for the offering.

BPI Capital Corp. was named the issue manager.

The bonds will be subject to registrati­on requiremen­ts by the Securities and Exchange Commission. The conglomera­te plans to issue the bonds at par or 100 percent of face value. They will be issued in scripless form in minimum denominati­ons of P50,000 each and in multiples of P10,000 thereafter.

Ayala Corp. last tapped the local bond market in April with its public offering of 15-year bonds that were priced to yield 6.875 percent a year, the first corporate bond issue in the domestic capital market of this tenor. The bonds were listed on the Philippine Dealing & Exchange Corp. in May.

The conglomera­te has recently been putting more chips in new growth areas, including infrastruc­ture and power generation.

Late last year, the conglomera­te won the bidding for the Daang Hari connector toll road under the government’s public private partnershi­p program.

It also forged recently an agreement with the Metro Pacific group to jointly pursue and develop light rail transit projects in Metro Manila.

Newspapers in English

Newspapers from Philippines