Ayala Corp's P20-B shelf registration gets SEC green light
MANILA, Philippines – The Securities and Exchange Commission (SEC) gave Ayala Corporation the go-signal to pursue its shelf registration of fixed-rate bonds worth P20 billion, which will be used mainly to refinance its obligations.
Documents from the SEC showed that Ayala will initially issue P10 billion 7-year bonds, while the remaining P10 billion will be placed under shelf registration to be issued within the next 3 years.
Shelf registration is a type of public offering wherein firms are allowed to sell securities to the public, without a separate prospectus for each act of offering.
The conglomerate hired BDO Capital & Investments Corporation as issue manager for this fund raising activity. (READ: JAZA: Next PH should brighten up the future)
Joining BDO Capital as joint lead underwriters are BPI Capital Corporation, China Bank Capital Corporation, and First Metro Investments Corporation.
Proceeds from this fund-raising activity will be mainly used to refinance the group's P10-billion bond maturing in April 2017.
Healthy pace for 2016
Ayala, which has major investments in the real estate, banking and telecommunications sectors, expects most of its business units to continue growing at a healthy pace for 2016.
Its chairman and CEO, Jaime Augusto Zobel de Ayala, said the conglomerate will continue to strengthen its growing portfolio of power and infrastructure investments, as it executes various projects.
The group also expects its power business to sustain its positive earnings trajectory in 2016.
"The company will continue to explore new investments in healthcare and education, while looking for opportunities to scale up its automotive manufacturing businesses," Ayala said.
"Overall, Ayala remains vigilant in tracking economic indicators and other relevant metrics across the group to give the company a pulse on the economy," the conglomerate added.
During the company's annual stockholders meeting, Ayala reported that it was targeting to double its net income to P50 billion by 2020.
To achieve this target, the conglomerate said it will seek new businesses in automotive and manufacturing, while growing its energy and infrastructure investments.
Ayala is also expecting earnings contribution outside its 4 largest business units: namely Ayala Land, Globe Telecom, Bank of the Philippine Islands, and Manila Water Company to 20% from the current 4%. – Rappler.com