Ayala Corp to raise P15B for power, infra investments

MANILA, Philippines – Ayala Corporation is raising P15 billion ($342.58 million*) through the issuance of preferred shares to fund its power and infrastructure investments.

In a disclosure to the Philippine Stock Exchange on Tuesday, August 26, Ayala said the executive committee of its board of directors has approved the issuance and offering of up to 30 million in new and separate series of preferred Class B shares at a price of P500 ($11.42) per share.

Ayala managing director John Eric Francia said the issuance would likely happen in the last quarter.

The preferred shares will have a fixed quarterly dividend rate, which shall be based on the 5-year or 7-year Philippine Dealing System Treasury Reference Rates plus a spread to be determined at the time of the issuance. They shall be non-convertible with no voting and pre-emptive rights.

Ayala hired BPI Capital Corporation as issue manager.

Bridging the infra gap

The Ayala group has made significant power and infrastructure investments in the past years, and has allotted P24 billion for capital expenditures in these sectors this year.

The conglomerate, together with Metro Pacific Investments Corporation, recently won the bidding for the Light Rail Transit 1 Cavite Extension project, and was the highest complying bidder for the Cavite-Laguna Expressway project.

It is planning to bid for the P123-billion ($2.81 billion) Laguna Lakeshore Expressway-Dike project of the Department of Public Works and Highways.

In the first half, Ayala registered a net income of P9.8 billion ($23.87 million), 34% higher than same period last year, driven by the solid performance of its core businesses, particularly Ayala Land, Globe Telecom, and Manila Water. – Rappler.com

*($1 = P43.76)