Posted on October 04, 2012 10:40:15 PM
[ BusinessWorld Online ]
THE BOARD of listed Ayala Corp. has
approved the issuance of up to P10 billion worth of seven-year, fixed-rate
bonds in order to bankroll its operating capital expenditures, the conglomerate
said in a disclosure to the Philippine Stock Exchange (PSE) yesterday.
“Please be informed that, at its special meeting held today, our board
of directors approved the offer and issuance of Ayala fixed-rate bonds in the
aggregate principal amount of up to P10 billion, subject to the registration
requirements of the Securities and Exchange Commission and the appointment of
BPI Capital Corp. as the issue manager,” the disclosure read.
The bonds, which will have a
seven-year tenor, will be priced at par or 100% of face value.
They will be issued in minimum
denominations of P50,000 each and in multiples of P10,000 thereafter, the
disclosure added.
They will also have a call option that
will give Ayala the right to redeem the bonds starting the fourth year after
issue date, the disclosure noted.
Ayala said in a separate statement
e-mailed yesterday that proceeds from the bond issuance will be used to “fund
Ayala’s general working capital account and general corporate purposes,
pursuant to its operations as a holding company.”
Last May, Ayala listed P10 billion
worth of fixed-rate bonds that were issued with a 6.875% interest rate due in
2027. Proceeds from that issuance were programmed for new capital investments
and certain debt prepayments.
For 2012, Ayala has allotted P91
billion in capital expenditures to finance real estate development,
telecommunication network improvement, water business investments, as well as
acquisitions.
Ayala’s net income grew 23.33% to
P6.08 billion in the first half from P4.93 billion the previous year. Shares of
the conglomerate advanced P15.40 to P440.20 apiece yesterday from P424.80 on
Wednesday. -- F. J. G. de la Fuente
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