Ayala to offer P10-billion worth of bonds

Posted at 11/14/12 1:24 PM

MANILA, Philippines - Ayala Corp. is offering P10 billion worth of fixed-rate bonds due 2019, proceeds of which will be used for the firm's expansion plans.

In a disclosure on Wednesday, the conglomerate said the seven-year bonds with an interest rate of 5.45% per annum is being offered to the public until Nov. 16.

The firm said the book-building process showed a strong demand for the bond with orders reaching 170% of the issue size. Retail demand, meanwhile, is also foreseen to be strong and reach up to 95% of the offer.

"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.

The P10-billion worth of fixed-rate bonds will be offered to the public through underwriters: BPI Capital Corp., BDO Capital & Investment Corp., First Metro Investment Corp., Hongkong and Shanghai Banking Corp., ING Bank Manila, RCBC Capital Corp., SB Capital Investment Corp., and Standard Chartered Bank.

Ayala said the bonds are expected to be listed at the Philippine Dealing and Exchange System (PDEX) on Nov. 23.

Since 2004, the conglomerate has raised a total of P70 billion from tapping capital markets. Its latest bond issuance was done in May, during which Ayala raised P10 billion.