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Ayala prices P10-billion bond offer

Posted on November 14, 2012 10:56:05 PM [ BusinessWorld Online ]

LISTED CONGLOMERATE Ayala Corp. will offer until tomorrow its P10-billion fixed-rate bonds with an interest rate of 5.45% in a bid to raise fresh funds for capital expenditures, the company said in a disclosure yesterday.

“Ayala will offer to the public until Nov. 16 the P10-billion, seven-year corporate bonds due 2019. The bonds bear an interest rate of 5.45% per annum,” the disclosure read, adding that the bonds are scheduled for listing on the Philippine Dealing & Exchange Corp. on Nov. 23.

“Ayala is raising funds for 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,” the company said.

For 2012, the conglomerate had allotted P91 billion in capital expenditures to finance real estate development, telecommunication network improvement, water business investments, and acquisitions.

According to a registration statement filed with the Securities and Exchange Commission, the bonds will be issued in minimum denominations of P50,000 each and in multiples of P10,000 thereafter, and will have a call option that will give Ayala the right to redeem the bonds starting the fourth year after their issue date.

Ayala shares gained P1 or 0.23% to P444 apiece yesterday from P443 last Tuesday. -- Franz Jonathan G. de la Fuente

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