Ayala raises P3-B for infra, power projects

MANILA, Philippines – Ayala Corp., the country’s oldest conglomerate, raised P3.3 billion through the sale of shares for existing and future infrastructure and power projects.

Ayala sold 5.18 million common shares from its treasury at P647 apiece, a 3% discount to its last market closing price of P667, it said in a statement.

The shares were expected to be crossed through the Philippine Stock Exchange on May 30, with the payment date set on June 4.

“Ayala intends to use [proceeds] to fund existing and potential sizable projects in the infrastructure and power sectors,” the company said, adding it plans to spend $1 billion in said sectors over the next 5 years.

Since 2011, Ayala has established a robust pipeline of power projects in conventional and renewable technologies. It has committed over $300 million of equity for 900 megawatts of gross generating capacity. It is looking to increase this to up to $600 million in the next two years.

Ayala entered into an agreement to acquire around 20% of GN Power Mariveles Coal Plant Ltd. Co., a 600-megawatt coal facility in Bataan soon to commence operation. It holds 50% of South Luzon Thermal Energy Corp., which is constructing a 270-MW coal plant in Batangas in partnership with Trans Asia Oil and Development
Corp.

In the renewable energy space, Ayala has a 50% stake in NorthWind Power Development Corp., which operates the 33-MW wind facility in Ilocos Norte; as well as interests in various mini-hydro projects.

Ayala said it continues to actively explore greenfield and acquisition opportunities given the significant power backlog in various regions.

In infrastructure, on top of the Daang Hari–SLEX Connector road, the first Public-Private Partnership project rolled out that Ayala won, the company has set its sights on bidding for toll road, rail, and airport projects.

It tied up with Pangilinan-led Metro Pacific Investments Corp. (MPIC) for the Light Rail Transit Line 1 extension project bid.

The Ayala-MPIC consortium was also pre-qualified to bid for the automatic rail fare collection system, and the Mactan-Cebu International Airport passenger terminal project in partnership with Aboitiz Equity Ventures and ADC&HAS Airports Inc.

“This new funding will further strengthen our balance sheet to build up our portfolio in these two sectors. Overall, we are excited about the opportunities and the strategic value that investments in these two sectors can bring to Ayala,” said Ayala President and COO Fernando Zobel de Ayala.

“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. – Rappler.com