MANILA, Philippines — Ayala Corp., the country’s oldest conglomerate, is returning to  the bond market to raise up to P15 billion in fixed-rate bonds.

In a disclosure yesterday, Ayala said it has filed with the Securities and Exchange Commission (SEC) a registration statement for the issuance of  P10 billion in bonds, with an oversubscription option of five billion.

The bonds – due 2025, 2027 and 2029 –   will form the second tranche of a P30-billion shelf-registration program with the SEC.

The bonds obtained the highest issue credit rating of PRS Aaa from local debt watcher Philippine Rating Services Corp.

Obligations rated as PRS Aaa are of the highest quality with minimal credit risk.

A PRS Aaa rating likewise signifies that Ayala’s capacity to meet its financial commitment  is extremely strong, PhilRatings said.

Proceeds from the bond issue will  be used for general funding requirements as Ayala realigns its portfolio and focuses on core businesses such as banking, telecommunications, property and renewable energy.

The Ayala Group is setting aside P285 billion for its capital expenditures and investments this year, higher than the P228 billion in 2021.

Bulk of the spending plan will be for Ayala’s flagship units, property giant Ayala Land Inc., telco arm Globe Telecom Inc. and its renewable energy player AC Energy (ACEN).

Last year, Ayala grew its net income by 62 percent to P27.8 billion, primarily driven by realized income from the execution of strategic initiatives, boosted by the improved performance of Ayala Land and BPI.

SOURCE:

https://www.philstar.com/business/2022/04/13/2174131/ayala-eyes-p15-billion-bond-offer