Ayala sets P10B bond offer
Ayala Corp. has formally filed for a P10-billion bond offering for its P30 billion shelf-registered debt securities program.
The company said the initial tranche of the program will be divided into a P6 billion initial offer and another P4 billion to cover for the oversubscription option.
It will be tagged as Series A bonds due 2024 and Series B bonds due 2026, Ayala said.
The company said it has secured a PRS Aaa rating for the bond issuance from the the Philippine Rating Services Corp.
“Obligations rated PRS Aaa, are of the highest quality with minimal credit risk. A PRS Aaa rating signifies that the obligor’s capacity to meet its financial commitment vis-í -vis the obligation is extremely strong,” the company said.
Cebu Pacific records P22B loss
Cebu Pacific (CEB) reported a net loss of P22.2 billion in 2020, a reversal from a net income of P9.1 billion in 2019, due to the severe impact of the coronavirus disease 2019 (COVID-19) .
CEB flew only 5 million passengers last year, down 78 percent from 2019, and total flights dropped 71 percent to 41,804.
Pre-COVID, CEB flew about 400 flights a day. This dropped to an average of 47 flights a day in the third quarter, to 76 flights a day by December or about 20 percent of pre-COVID levels.
When the enhanced community quarantine was put in place on March 19, 2020, CEB’s commercial operations were grounded, and resumed on June 3, albeit gradually.
CEB revenues fell by 73 percent to P22.6 billion in 2020. Cargo operations contributed P5.4 billion, or 24 percent of CEB’s total revenues in 2020, as cargo freighter and charter flights contributed to higher yield.
Total operating expenses were reduced by 40 percent to P43.4 billion. Fuel showed the steepest decline, as less flights were coupled with lower fuel cost.
CEB said other operating expenses also declined as it continues its rigorous cost reduction initiatives, including the right-sizing of its network, fleet and manpower, while improving operational efficiencies through various digitalization efforts.
CEB closed 2020 with an operating loss of P20.77 billion and negative earnings before interest, tax, depreciation and amortization of P932 million.
Amid severe losses incurred in 2020, CEB has successfully completed two significant fundraising initiatives amounting to P28.5 billion.
CEB’s convertible preferred shares were successfully listed on the Philippine Stock Exchange on March 29, providing the airline with P12.5 billion in fresh capital.
In addition, CEB signed a P16-billion, 10-year term loan facility with a syndicate of domestic banks early this month.
CEB said proceeds of these fundraising activities will be used to strengthen its balance sheet by providing liquidity to address its financial liabilities and working capital for general corporate purposes. Myla Iglesias
FLI nets P3.7B, down 41%
Filinvest Land Inc. reported profit of P3.73 billion in 2020, down 41 percent from the prior year’s P6.28 billion. Revenues reached P9.84 billion, down 32 percent from P14.47 billion.
The company said office leasing revenues reached P5.56 billion, up 8 percent from P5.17 billion. Filinvest Land has 31 operational office buildings and 11 buildings under construction that will be completed in the next two years.
The company has filed for a P14.92 -billion initial public offering of its real estate investment trust (REIT) unit Filinvest REIT Corp. of 1.79 billion secondary shares of Filinvest REIT at an offer price of up to P8.30 per share.
The company said it has noted a recovery trend in the last quarter of 2020 despite challenges posed by the sustained COVID community quarantines around the country.
The company reported a 50 percent increase in residential revenues at P3.17 billion in the fourth quarter of 2020, coming from P2.12 billion in the third quarter.
A strong recovery was also seen in mall revenues in the fourth quarter as they rose 66 percent compared to the third quarter.
Josephine Gotianun-Yap, Filinvest Land president, said for 2021, the company is focusing on the completion of its key office building projects, the development of Phase 1 of the Filinvest Innovation Park in New Clark City, and the continued rollout of its lower density Aspire and Futura urban mid-rise buildings and housing residential developments across the country. Ruelle Castro
Smart taps Vodafone for Australia 5G roaming
Smart Communications Inc. has partnered with leading global operator Vodafone to provide fifth generation (5G) roaming services for subscribers in Australia.
This is the latest in Smart’s 5G roaming expansion in key markets across Asia, the Middle East, and now, in Australia.
Vodafone 5G network is progressively being rolled out across Australia, while its 4G mobile network serves over 23 million subscribers in the land down under.
Smart prepaid and postpaid customers in Australia can enjoy worry-free 5G roaming speeds using their Smart 5G-certified device and Smart 5G-capable SIM.
Overseas customers can enjoy the full potential of Smart’s 5G roaming service with GigaRoam plans for as low as P999 for five days. Travelers can easily update their social media, upload travel vlogs, and access work-related productivity apps.
Smart serves approximately 95 percent of the country’s cities and municipalities with over 71.4 million mobile subscribers as of end 2020.
