Posted on November 23, 2012 08:54:41
PM [ BusinessWorld Online ]
LISTED AYALA Corp. is planning to
offer bonds longer than 15 years and foreign currency-denominated papers to
raise more funds to finance its forays into infrastructure, an official said on
Friday.
“We have done the 15 years [tenor]
already. As we get into more infrastructure-related investments, the need to
extend the tenor becomes more compelling,” said Ramon G. Opulencia, Ayala’s
managing director and treasurer, at the sidelines of a listing ceremony at the
Philippine Dealing Exchange Corp. (PDEX).
Ayala on Friday listed P10 billion
worth of 5.45% seven-year bonds that were issued early this month and will
mature in 2019.
The bonds were meant to “fund its
capital requirements to enable the company to realize opportunities for
expansion both through organic growth of its existing business lines as well as
value- accretive acquisitions,” Ayala said in an earlier disclosure.
“I think the market is very conducive
for developmental and ground-breaking work, and therefore we are thinking of
more innovations,” Mr. Opulencia added, but declined to go into the details of
the new bonds.
Dollar-denominates issuances are also
a possibility, he added.
“I think there are a lot of
opportunities to do ground-breaking deals, and one of the innovations we are
thinking is a non-peso denominated listed security, the first in the
Philippines for a corporate,” he added.
Asked how much the company intend to
raise, he only said: “Right know, you should not issue more than P8 billion
worth [of dollar bonds] for a company like us. It should be at least $200,000
million worth.”
In April, Ayala issued P10 billion
worth of 15-year, 6.875% peso-denominated bonds that will mature in 2027. The
money raised would fund its operations and possible expansion.
The company has announced more
projects in power generation and infrastructure such as railways and other
transportation projects.
For 2012, the conglomerate had
allotted P91 billion in capital expenditures to finance real estate
development, telecommunication network improvement, water business investments,
and acquisitions.
The company’s core net income grew by
31% to P9.3 billion in the nine-months to September driven by its property,
banking, and water businesses, which offset the decline in equity earnings from
its telecommunications business.
Shares of Ayala added 1.38% or P6.60
to P486.60 apiece when the stock market closed on Friday. -- Cliff Harvey C.
Venzon
_____________________________________________________________
