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MANILA, Philippines – Ayala Corp has begun to raise funds to build up a war chest as it looks to invest US$1 billion in the transport and power generation sectors over the next 5 years.
Ayala raised P6.54 billion (about $157 million) from the sale of 15 million treasury shares at P430 apiece, it told the Philippine Stock Exchange in a disclosure on Wednesday, July 18. The private placement was priced at a 6% discount on the company’s closing price of P458 per share on Tuesday, July 17.
“The company is in a phase of active investment and is eyeing to build new businesses in power and transport infrastructure,” Ayala President and COO Fernando Zobel de Ayala said.
“We hope to be able to contribute in some measure to the development of these sectors and at the same time, create future sources of earnings and value for the group,” he added.
Ayala, the first company that won a big-ticket infrastructure project under the government’s Public-Private Partnership (PPP), is keen on participating in other projects to be bid out under this program.
On top of the Daang Hari-SLEx Connector road it won in December last year, the company is also eyeing railways in Metro Manila which it agreed to pursue with rival Metro Pacific Investment Corp.
Other projects of interest to the group include the NAIA Expressway and Cavite-Laguna Expressway.
In the power generation sector, Ayala has committed $100 million funds on 180 megawatts of gross generating capacity. It tied up with the Phinma group for the construction of a 135-MW thermal plant in Calaca, Batangas and is gradually building its portfolio of renewable energy sources such as solar, wind and hydro.
“In the same manner Ayala invested in the telecom and water sectors in the past, we believe the power and infrastructure sectors are critical for the country’s growth and development,” Zobel said.
Ayala is not only eyeing opportunities in the Philippines however. It recently bought 10% of Ho Chi Minh Infrastructure Investment Co, which holds toll road concession contracts in Vietnam. – Rappler.com
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